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What are the benefits of working in Germany?

Posted on January 16, 2023
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What are the benefits of working in Germany

Is Germany a good country to work in?

Yes! Germany is an excellent country for immigrants to live, work, and settle. Germany provides high quality of life due to social, economic and political stability. The education system in the country is strong because of the presence of popular universities. Both theoretical and practical courses are available at the universities. Students can also avail of the research programs available with many universities.

*Check your eligibility to migrate to Germany through the Y-Axis Germany Immigration Points Calculator.

Employment opportunities in Germany

Germany has the strongest and largest economy in Europe. The unemployment rate in the country is 2.8 percent. Germany is facing skills shortage and is in dire need of foreign workers to fill the job vacancies available in different sectors. Currently, there is an urgent requirement for STEM graduates like scientists, engineering, mathematicians, IT specialists, financial sector, etc.

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Benefits of working in Germany

Germany is becoming a favorite place for immigrants to live, work, and settle. There are many benefits to work in Germany and some of them are as follows:

Retirement Pensions

Individuals who have insurance and reached the retirement age will receive the old-age pensions. They need to complete the minimum insurance period along with other eligibility criteria. The retirees will receive payments which equals to around 70 percent of their net income. Employers and employees have to contribute 9.3 percent each. The percentage of payment is based on their net income up to a maximum contribution ceiling which is €7,300 in the western and €7,100 in the eastern states.

Unemployment insurance

There are many reasons due to which you can lose your job in Germany. In such a case, the government of Germany provides unemployment benefits which are of two types:

  • Unemployment benefit I
  • Unemployment benefit II

Under unemployment benefit 1, if you have made regular contributions to the German social security system during your employment, you will be eligible for unemployment benefit I. Most of the employees have to contribute to the unemployment insurance. The unemployment benefit will be provided by the Federal Employment Agency.

If you are not eligible for the unemployment benefit I, you have the option to apply for basic subsistence benefit or unemployment benefit II. Your age should be between 15 and the statutory retirement age and you have the ability to work 3 hours per day under normal circumstances.

Free Healthcare

The citizens and residents of Germany are entitled to get free health care which is funded with the help of social security contributions. Citizens and residents have to go for state or private health insurance to cover pregnancy and medical treatment. Public healthcare covers treatments and services like prescriptions, immunizations, and dental check-ups.

Free Education for Children

Most of the German schools come under state and parents need not have to pay any fee. Contributions towards extra-curricular activities like trips and excursions may have to be made. Families on lower incomes will also get subsidies and bursaries. Education policy for each state is different and children have to study according to the curriculum of the state. Private schools charge fees but they also provide scholarships.

Easy access to Germany PR

You will be able to get permanent residence in Germany on the basis of current residential status. The residential status includes the following:

  • Skilled workers have to reside in Germany for four years
  • Researchers will have to live in Germany for four years
  • Skilled workers with a German University degree can get permanent residence after residing for 2 years
  • If you hold an EU Blue Card, you can get the Germany PR after 33 months
  • If you are an EU Blue Card holder and speak German language, you will get Settlement Permit after 21 months
  • Self-employed individuals can get German PR after 3 years
  • Family member of a German citizen can get permanent residence after three years
  • Asylum seekers or refugees can get Germany PR after 5 years. The time can be reduced to 3 years if they have adequate knowledge of the German language.

Long term nursing care

You can get long term nursing care through regular and compulsory contributions from employees in Germany. The amount of contribution is 3.05 percent to 3.4 percent of the annual salary.

Retirement pension

German retirement system consists of three pillars:

  • The government-run Retirement Insurance system
  • Private company plans
  • Private individual retirement investments

The public retirement insurance system includes survivor and disability benefits. Employees have to make contributions on the basis of their annual earnings. Employers and employees have to pay half of the premiums. Contributions may be increased to 20 percent by 2025. The amount of the pension has to be made to the eligible candidate by calculating the contributions made in the number of years of employment.

Life Insurance

Life insurance in Germany is also known as risk life insurance. It is a policy in which the insurance company will pay a selected amount of money to the dependents of the deceased person. If you have dependents in Germany, you should purchase a life insurance. People who can avail life insurance in Germany are:

  • Parents having young children
  • Main earner in a family
  • Business owners
  • Old adults with no savings
  • Adults having loans

Medical Insurance

Immigrants who migrate to Germany as a visitor, skilled worker, or student have to be covered by a medical or health insurance. The insurance has to be purchased according to the duration of stay. You can go for either public or private health insurance which has to be issued by a licensed provider. The criteria are different for travel health insurance and expats. Different types of health insurance in Germany are as follows:

  • Travel Insurance for Visitors/Tourists in Germany
  • Health Insurance for International Students in Germany
  • Health Insurance for Guest Scientists & Researchers in Germany
  • Health Insurance for Foreign Employees in Germany
  • Health Insurance for Freelancers in Germany
  • Health Insurance for Au Pairs in Germany
  • Health Insurance for Refugees/Asylum Seekers in Germany

Dental Insurance

Statutory or public health insurance includes dental treatment. As the public insurance companies have to cut cost, so coverage for dental treatment is reduced. Dental insurance includes coverage for the following:

  • Basic fillings
  • Dental check-ups
  • Scaling
  • Hygiene work
  • Removal of wisdom teeth

For other treatments, partial or full payment has to be made by the patients. In order to get rid of these payments, individuals go for supplemental dental insurance to cover treatments like root canal, putting crowns and bridges, etc.

Vacation/special leave

Employees who work for 6 days a week get paid vacation of 24 days. The number of paid vacations for employees working 5 days a week is 20 days. Usually, employers give 25 to 30 days of paid leaves for workers working five days a week. Employees who are severely disabled get additional paid leaves of 5 days. Employees are not allowed for paid time off for the first six months.

Work for Four-Day Week

According to the Work Economic Forum, Germany has average working week of 34.2 hours. This happened as the trade unions have asked for reduction in working hours. Around 71 percent of employees in Germany like to work four days a week. IG Metall, the largest trade union in Germany, has made a proposal so that job losses can be reduced.

How Y-Axis assists you to work in Germany?

The following Y-Axis services will help you to work in Germany:

Are you looking to migrate to Germany? Talk to Y-Axis, the world’s no. 1 overseas immigration consultant.

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