The Statutory pension insurance is a branch of Social security in Germany. In particular, it serves to provide security in old age, in the event of reduced earning capacity and for survivors, and also includes rehabilitation services.
What is the statutory pension insurance?
Statutory Pension insurance, alongside health, long-term care, unemployment, and Accident insurance, is one of the branches of Social security.
Your main tasks consist of pension provision as well as the coverage of certain risks during and after working life. The statutory regulations regarding Pension insurance can be found in particular in the Sixth Book of the Social Code (SGB VI).
What benefits does the statutory Pension insurance cover?
The key areas of performance include, in particular:
- Old-age pensions
- Pensions for reduced earning capacity
- Survivor's pensions
- Rehabilitation or participation benefits
Whether and to what extent a specific entitlement to benefits exists depends on the respective statutory requirements.
How is the Pension insurance funded?
Statutory Pension insurance is financed in particular through contributions. In the case of standard compulsory insured employment relationships, employees and employers generally each bear half of the Pension insurance contribution.
Different contribution-sharing regulations apply to certain forms of employment and groups of insured persons.
How are the Rentenversicherung contributions calculated?
For employees, contributions are generally based on the contributory Remuneration. In the Payroll is the Remuneration relevant to Social security frequently used as gross social security salary depicted.
earnings subject to social security contributions is only used up to the currently applicable contribution calculation limit. Contribution assessment limit (BBG) taken into account.
What does Pension insurance mean in Payroll?
For employees with compulsory pension insurance, employee contributions and Employer contribution are taken into account as part of the Payroll.
The Rentenversicherungs contributions generally form part of the overall social security contribution, which the employer pays to the responsible collection agency.
