
Every employee is issued a social security card, which is proof of the employee's contribution to the statutory insurance. Nevertheless, in order to benefit from these pillows (i.e., statutory health insurance, statutory pension insurance, statutory accident insurance, statutory unemployment insurance), you have to be a member of the respective insurance scheme(s) towards which you pay monthly contributions from your salary. Read also Finding work in Germany Social security in GermanyĪs we have seen in our article the healthcare system in Germany, Germany offers great support to individuals who fall ill or lose their job as part of its social security system. The tax bracket determines the value of social benefits, such as social security and maternity leave. Bracket VI is for employees with more than one job, and finally, the bracket I is for single or separated individuals who don't fall into brackets II or III. Tax bracket IV is for married couples and civil partners who earn a similar amount of money. Tax bracket II is for single parents bracket III is for married couples and civil partners and applies to the spouse who earns more, whereas the spouse with the lower income falls under bracket V. A person can switch from one to another when a big change in their income occurs, or their life circumstances change (e.g., get married, have children, undertake more than one job, etc.). In Germany, there are six tax brackets (Steuerklassen). So, here is what you need to know about the German income tax. At, we know that understanding the local tax system is essential for settling properly in a new country. Hence, you don't have to worry about the monthly practicalities, however, it is highly advisable to keep track of your payslips and any income tax-related documents. No matter what type of work you do (i.e., full-time, part-time, freelance work, etc.), your wages are taxed, usually on behalf of your employer. Couples in Germany (married or registered cohabiting partners) submit a joint tax return, even if their taxes are under different brackets.
