Brief definition
The Statutory pension insurance is a branch of Social security in Germany. It serves to provide financial security in old age and in the event of reduced earning capacity.
In addition, it includes benefits for rehabilitation and survivor care.
Financing
The pension insurance scheme is financed primarily by contributions. These are generally borne jointly by employers and employees (parity financing).
The contributions are calculated from the taxable employment income. The decisive factor is the Gross social insurance contribution.
Performance Areas
- Old-age pensions
- Disablement pension
- Survivor's pensions
- Medical and vocational rehabilitation services
Meaning in payroll
In the payroll run, pension insurance contributions are calculated on the basis of the insurable wage. Employers determine both the employee and employer shares and pay the total contributions within the scope of social security notifications.
The pension insurance is an integral part of the monthly contribution statements.
FAQ
What is the statutory pension insurance?
A branch of social insurance that ensures provision for old age and reduced earning capacity.
Who pays the contributions?
Employers and employees generally share the contributions.
How is pension insurance taken into account in the payroll run?
The contributions are calculated on the basis of the gross social security contribution and paid over together with the other social security contributions.
Conclusion
The pension insurance is a central component of social security in Germany. For companies, the correct calculation and remittance of contributions within payroll accounting is essential.
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