Health Insurance and Tax deductions

health insurance

Since 2015 the (uniform) rate of the (obligatory) health insurance is 14,6% (payed half by the employee and the employer). In addition, each insurance can add a flexible additional rate (‘Zusatzbeitrag’) payable only by the employee. In 2015 the average additional rate is 0,9%.

Earning over a certain limit (2015: 54.900 €/year) the employee could choose a private health insurance. The employer still pays the half of the premium (in 2015 max. 349.59 €/month). The amount of the health and disability insurance (as for the others) is limited by an upper application limit: (in 2015) 49.500 €/year. Earning more will not increase the insurance premium. The maximum premium/month is therefore 49.500 € x 7,3% / 12 = 301,13 € plus the additional flexible rate (2015 mostly at 0,9%).

Different from former years since 2010 the (obligatory) health insurance premium including the disability insurance is deducted from the wage before taxation (only the amount the employee has to pay and only 7,3% + additional rate + the (different) disability insurance percentage from the wage). The same is allowed for the private health insurance but only for a premium for basic treatments (like the obligatory health insured people get). The basic premium has to be entered for tax calculation reasons, the paid one to calculate the employer’s liability. Because the disability insurance rate depends on having children too, the tax depends now also on this fact.

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