Personal Finance PerFinExplained

Do you think personal finance in Germany is difficult? Not if it is PerFinExplained by PerFinEx - the #1 English-speaking & independent financial planner in Germany.

Explained: deductions as an employee

As an employee in Germany, you are required to pay for social security. This includes health insurance, public pension, care insurance, unemployment insurance and accident insurance. All this is automatically deducted from your gross salary. How much this is exactly and how exactly the social security system works is explained in more detail in the following articles.

Social security system

Social Security System Explained

  • The German social security system is mandatory for employees. Only self-employed and business owners can leave.
  • Social security contributions are always split in half, between you and your employer.
  • The German social security system consists of five components. Health insurance, German public pension, unemployment insurance, long-term care insurance and accident insurance.

German Payslip Explained

  • On top is your tax and health insurance information
  • Followed by your deductions for taxes and social security
  • Bottom of your payslip consists of the calculation

German Pension System Explained

  • Pension Level 1: Public pension and base pension
  • Pension Level 2: Riester pension and company pension
  • Pension level 3: Private pension and in future the PEPP 

Public or Private Health Insurance

  • Health insurance is mandatory in Germany
  • Basically two different health insurance options
  • Required income for private health insurance is 64.350€

Income Tax in Germany Explained

  • There are six different tax classes in Germany. You can only make a change in your tax class as a married couple.
  • Paying taxes is never fun. Therefore, it might make sense for you to do your tax declaration.
  • There is a marginal and an average income tax rate in Germany. The difference and how it exactly works can you read in the following

Explained: Tips and Tricks in Germany

Just like any other country, Germany has certain things that are common for Germany. There are also several things to consider when you are new to Germany. Here are some important things you should pay attention to.

High inflation in Germany

  • At the moment, every country is struggling with inflation, including Germany.
  • There are some things that can be done to counter inflation
  • Follow our five steps to fall in love with inflation

Transfer money to & From Germany

  • In Germany there is a certain rule for a money transfer to be legal
  • You have basically three different options to transfer money
  • We will explain you step by step how to take care of your transfer

German Bausparvertrag Explained

  • The Bausparvertrag is a typical savings method in Germany
  • A Bausparvertrag has same advantages and also some disadvantages
  • Does a Bausparvertrag make sense for you?

Our "PerFinExplained" YouTube Playlist

Every week we publish at least 1 video on our PerFinEx YouTube channel on all things personal finance in Germany. Below you can find our playlist that contains all videos PerFinExplaining how money works and how it can work for you while you are living here in Germany.

Our service and contact

Personal finance in Germany can be difficult – especially as an expat with limited German language skills. We make your financial planning as easy as possible. All you need is a device that is connected to the internet to secure a free online meeting with us.

Reach out to us and secure a free 30-minute online meeting with us.