Tax System for International Students in Germany

It is always interesting to know how much tax you have to pay once you work part-time in Germany. Surely when you work, you must pay taxes regardless of your status. It depends on your income and how much taxes you have to pay.

If you earn less than 8,130 Euro a year you will get back the taxes you have paid at the end of the year if you submit an income tax return to the tax authorities. Having a mini job of not more than 450 Euros protects you from paying the taxes.

Pension insurance

All employees in Germany must make a contribution from their earnings to the state pension scheme. Usually, this amounts to 9.45% of income. On the other hand, the student has to pay less contribution towards this.

An income up to 450 Euro is exempted from contribution. With an income of between 450 and 850 Euro per month or more than 20 working hours per week, the amount is reduced. Whoever earns more, pays higher contributions. As of an income of 850 Euro per month students pay the full share of 9.45 %.

Health insurance/nursing care insurance

Even if they have a side job students are usually insured as students and not as employees. In that case, they do not have to make any income-related contributions towards health insurance. Under some circumstances, if they work more than 20 hours a week, students have to contribute to health insurance. Clarify this beforehand with your employer!

Unemployment insurance

In fact, as a student you do not pay an unemployment contribution, so you are not going to enjoy this service once you are unemployed.

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