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The compulsory insurance ceiling (also known as the statutory ceiling) limits how much money can be earned annually before further contributions stop being made on behalf of an employee. So what exactly does this mean? Let's take a look!
Germany's pension system is one of the most generous in Europe, but it has changed over time. Today, there are several ways to qualify for a state pension in Germany: you can contribute to the national social insurance system through your employer and the government; you can pay into private pension schemes; or you can be self-employed and have your own retirement plan. In any case, there are minimum insurance contributions required by law in order to qualify for a German state pension - these vary depending on whether or not you're employed full-time or part-time and if you're self-employed.
The minimum insurance contributions are calculated based on your income, with your employer accounting for half and your state making up the other half.
Pension scheme II - This scheme is available only to those who have been employed since before 1 January 2008 and were born before 1 January 1967; it's also open for anyone who was self-employed before 1 January 2008 and has been continuously insured since then (with no gaps). In addition, if they've paid into this scheme since 2005 or earlier but weren't able to receive benefits due to illness or injury at any point prior during that time span as well as having never taken early retirement from employment due to health reasons either before turning 65 years old
The compulsory insurance ceiling is the maximum amount that you can earn within a year before the state contribution stops.
The compulsory insurance ceiling is the maximum amount that you can earn within a year before the state contribution stops. This is to ensure that your pension and social security are paid. It's based on your income and how much you earn, so it may differ from person to person.
For example, if you earn EUR 12,000 in a year, you'll contribute EUR 1,200 toward your pension but your employer will contribute EUR 600 to this as well. However, if you earn more than EUR12,200 per year, the state won't make any contribution toward your pension anymore.
For example, if you earn EUR 12,000 in a year, you'll contribute EUR 1,200 toward your pension but your employer will contribute EUR 600 to this as well. However, if you earn more than EUR 12200 per year, the state won't make any contribution toward your pension anymore.
Your employer is required by law to pay 50% of the minimum insurance contribution for employees who fall under certain income levels (see table below). If an employee earns less than this amount and thus does not qualify for any government subsidies on their retirement plan contributions then their employers must still pay half of those amounts regardless!
This means that if you earn more than this amount in one year, you'll have to pay for the rest of your pension yourself - unless you're self-employed.
This means that if you earn more than this amount in one year, you'll have to pay for the rest of your pension yourself - unless you're self-employed.
You can also find out how much money is needed for your retirement by using our pension calculator on this website.
If you're not sure what kind of income will allow you to save enough money for when it's time for you to retire, talk to an expert who can help guide you through this process
The German pension system includes both a minimum contribution made by an employer and state together as well as a compulsory insurance ceiling that limits how much can be earned annually before further contributions stop being made.
The German pension system includes both a minimum contribution made by an employer and state together as well as a compulsory insurance ceiling that limits how much can be earned annually before further contributions stop being made.
The minimum insurance contribution is calculated based on your income, while the compulsory insurance ceiling is set at EUR12,200 per year (2019). If you earn more than this amount during any given year, the state won't make any further contributions toward your pension anymore--it already paid out its share during those 12 months!
Conclusion
The German pension system is a complicated one, but it's important to understand how it works if you want to live in Germany long-term. The minimum insurance contributions and compulsory insurance ceiling are just two aspects of this system that affect everyone who earns money in Germany.
