Employee Pension – Direktversicherung

Converting part of your gross salary into a pension plan through a so – called Direktversicherung is a very attractive way of saving tax and social insurance payments. Let's take an example of a single person without children earning €3,000 a month and investing €200 a month.

 Basic Background    Basic Proposal for a Direktversicherung

 Tax rate: Class I

   Tax rate: Class I
 Church tax: 9%           Church tax: 9%
 Child allowances: 0    Child allowance: 0
 Public health insurance: 15.5%    Public health insurance: 15.5%
 Higher nursing care payment (childless): yes    Higher nursing care payment (childless): yes
     
 Situation before salary conversion    Situation after salary conversion
 Gross salary: €3,000    Gross salary: €3,000
 Tax: €542.24    Tax: €480.50
 Health and nursing care insurance: €282.75    Health and nursing care insurance: €263.90
 State pension and unemployment insurance: €343.50     State pension and unemployment insurance: €320.60
     
 Total deductions: €1,168.49     Total deductions: €1,065.00
 Net salary: €1,831.51      Net salary: €1,735.00
     
     Result:
     
     Net salary before: €1,831.51
     Net salary after: €1,735.00
     Contribution to pension: €200.00
     Tax saving: €61.74
     Social insurance saving: €41.75
     Total monthly saving: €103.49
     


Alternative:

Will your boss pay for your Direktversicherung? Ask! These tax and social insurance savings apply to companies, too!
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*based on Tax and Social Insurance Law 01.January 2011 
This text is merely an example and cannot replace a full quote for an individual client