Which contributions to unemployment and disability insurance can I specify?
Contributions to voluntary insurance against unemployment and occupational disability can be claimed.
Anyone who has taken out voluntary occupational disability insurance can claim the contributions as special expenses in their tax return.
However, these contributions are only recognised if the maximum amount for "other insurance" of 1.900 Euro for employees and pensioners and 2.800 Euro for self-employed persons has not yet been exhausted with contributions to basic health and nursing care insurance.
(2023): Which contributions to unemployment and disability insurance can I specify?
Is voluntary occupational disability insurance worthwhile?
Since the reform of the state pension in 2001, there have also been changes to the statutory occupational disability insurance. For anyone born after 2 January 1961, there is practically no statutory occupational disability insurance. This is because the distinction between statutory occupational and incapacity insurance no longer applies.
Instead, there is a two-tiered disability pension, which depends solely on whether the insured person can still work at all, regardless of their previous occupation and current job market prospects.
Those who could work three to six hours a day - in any job - receive half the disability pension. The full disability pension, which corresponds to the previous incapacity pension, is only available to those who cannot be expected to work three hours a day.
All pension-insured persons born before 2 January 1961 are exempt from this regulation. They still have occupational protection. They receive half the incapacity pension if they can no longer work in their previous occupation. Younger employees can only receive a disability pension if they can generally only work in a limited capacity or not at all. However, if no part-time job can be found, those who are actually only entitled to half the disability pension due to their daily capacity could also receive a full - labour market-related - disability pension.
In addition, you must have paid contributions for at least five years to be entitled to the statutory pension at all. During the first nine years of an occupational disability, the claims are only temporary. Every three years, it is checked whether the insured person is able to work again.
All employees who can still work at least six hours a day in any job - and this is often assumed - receive not a single cent from the pension fund.
Insure against occupational disability privately
To maintain your previous standard of living in the event of occupational disability, you can hardly avoid taking out additional private occupational disability insurance. The earlier you decide on occupational disability insurance, the lower the monthly premiums.
In addition, the entry barriers increase with age. Insurers often require health checks or refuse to conclude a contract altogether. Many insurance companies offer occupational disability cover as a standalone policy. Premiums and benefits vary greatly, so compare the offers carefully.
However, the standalone contract is not necessarily the cheapest. Those with dependents are best advised to opt for term life insurance with an occupational disability supplement. This combined contract is usually only slightly more expensive, often even cheaper than the standalone policy. In addition to the occupational disability pension, the double package also ensures the provision for dependents in the event of death.
This option is also recommended for trainees and students who will start a family later, even if the term life insurance is not yet needed. Less recommended, however, is the endowment life insurance with an occupational disability supplement. This combines the benefits of occupational disability and life insurance with a savings plan. In the event of invalidity, the insurance company takes over the savings contributions, so retirement provision is secured even in the event of occupational disability.
However: The premiums for endowment life insurance are very high. Although you can suspend payments for a while if necessary, you also lose occupational disability cover during this time. So, opt for term life insurance with an occupational disability supplement and a separate retirement programme.
(2023): Is voluntary occupational disability insurance worthwhile?
How can I take out voluntary unemployment insurance?
For self-employed individuals working at least 15 hours per week, there is an advantageous option for voluntary unemployment insurance - officially known as "insurance on request". For a small contribution, anyone who has been in insured employment for at least twelve months within the last two years can insure themselves against unemployment when starting their own business or becoming self-employed. Receiving a wage replacement benefit, such as unemployment benefit, is also accepted as a prerequisite, regardless of the duration.
However, the founder must decide quickly on voluntary continued insurance, as it is only possible within three months of starting self-employment.
The monthly contribution to voluntary unemployment insurance is based on the full reference value of social insurance. The reference value (West) in 2023 is 3,395 Euro/month. The reference value (East) is 3,290 Euro/month.
If the business idea fails and the founder loses their income or gives up their business, they receive benefits from unemployment insurance.
The amount of unemployment benefit is usually based on the gross salary earned before unemployment. In the case of voluntary insurance, the previous insured employment income as an employee is used if you were employed for at least 150 days in the last two years before applying for unemployment benefit. However, if no 150 days with contribution periods can be proven in the last two years before unemployment, unemployment benefit I is based on a fictitious income. The amount of this fictitious income is determined on a flat-rate basis according to professional qualifications. The qualification required for a job to which the employment agency's placement efforts are primarily directed is decisive.
In 2017, compulsory insurance in unemployment insurance was introduced for all carers - not just for relatives (§ 26 para. 2b SGB III):
- Persons who leave employment to care for relatives in care level 2 to 5 are subject to compulsory insurance.
- The prerequisite is that the carer provides at least ten hours of care per week, spread over at least two days a week.
- Another prerequisite is that the carer was subject to compulsory employment promotion insurance (as an employee) or was entitled to a current wage replacement benefit for employment promotion (unemployment benefit) immediately before starting the care activity.
- The contributions are paid solely by the care funds for the entire duration of the care activity.
For persons subject to insurance as carers, an income of 50 percent of the monthly reference value is considered as contributory income; the reference value for the accession area is decisive if the place of work is in the accession area. The reference value in pension and unemployment insurance is 3,395 Euro per month in the old federal states and 3,290 Euro in the new federal states. The contribution rate in unemployment insurance is 2.6 percent in 2023 (§ 345 No. 8 SGB III since 1.1.2017).
Since 1.8.2016, parents who take parental leave according to § 15 BEEG after the child's third year can also voluntarily insure themselves in unemployment insurance (§ 28a para. 1 No. 4 SGB III).
(2023): How can I take out voluntary unemployment insurance?
