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Social Security

What is Health Insurance?

Health insurance covers you in case of illness and costs you, as an employee, around 8.75% of your gross salary (2026). On a €4,000 gross salary, that is around €350 monthly – but your children and non-earning spouse are covered too, at no extra cost.

Statutory health insurance (GKV) is mandatory for most employees and offers comprehensive protection in case of illness. You pay 7.3% of your gross salary plus half of the fund-specific additional contribution (on average 2.9% in 2026, so your share is around 1.45 percentage points), so around 8.75% in total, or €350 on a €4,000 gross salary. Your employer covers the other half.

The big advantage of statutory health insurance: your family members are covered for free as long as they have no income of their own. Your spouse and all children are protected without you paying a single cent more. Under private health insurance, each person would need to be insured individually – for a family, that can quickly add up to €500-800 per month.

Savings tip: health insurance funds differ in their additional contribution by up to 2.1 percentage points (around 2.2–4.3% depending on the fund, 2026)! On a €4,000 gross salary, that can make up to €84 per month, or €1,008 per year. Switching funds is possible with a notice period until the end of the month after next (§175 (4) SGB V). But don't just compare the contribution rate – also look at extra benefits like bonus programs (up to €200/year), preventive care and alternative medicine.

Related terms

Calculate it yourself now

Use our free gross-net calculator to work out your net salary – with current 2026 tax values.

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