2026 Guide to Tax and Health Insurance for Students in Germany

#Taxation in Student Jobs: How Much Will Be Deducted?

When you start working in Germany, certain deductions will be made from the money you earn. These deductions generally consist of tax (Lohnsteuer) and social security contributions (Sozialabgaben). For students, these deductions vary depending on their employment status (Minijob, Werkstudent) and earnings.

#Tax (Lohnsteuer)

Income tax in Germany is applied using a progressive system, increasing with the amount of money you earn. However, there are some significant advantages for students:

• Grundfreibetrag (Basic Tax Exemption Limit): In Germany, you do not pay tax up to a certain annual income. This limit is called the "Grundfreibetrag" and is updated annually. For example, for 2024, this limit is approximately 11,604 Euro (these figures may change, check official sources for current information). If your annual earnings are below this limit, you can reclaim all the income tax you paid by submitting a tax declaration (Steuererklärung) at the end of the year.
• Steuerklasse (Tax Class): There are six different tax classes (Steuerklasse) in Germany. Single and unmarried students are usually assigned to Steuerklasse I. This class is used to calculate tax deductions.
• Tax Declaration (Steuererklärung): Even if tax deductions were made from your earnings during the year, if you remained below the Grundfreibetrag, you can reclaim the tax you paid by filling out a tax declaration. This process is usually done in the first few months of the following year and can be quite beneficial. If you are working as a student in Germany, you should definitely consider submitting a tax declaration.

#Social Security Contributions (Sozialabgaben)

Social security contributions include items such as pension insurance (Rentenversicherung), unemployment insurance (Arbeitslosenversicherung), health insurance (Krankenversicherung), and long-term care insurance (Pflegeversicherung). There are significant exemptions for students regarding these contributions:

• Minijob: Students working under a Minijob can usually claim exemption from pension insurance contributions. They are exempt from other social security contributions from the start. This is one of the main reasons why a Minijob is attractive.
• Werkstudent: Werkstudenten are exempt from unemployment insurance and long-term care insurance contributions. They only pay pension insurance contributions (with employer and student contributions). For health insurance, they generally remain covered by student health insurance, but this may change if their income exceeds a certain limit.

In summary, it is likely that you will encounter tax and social security deductions when working as a student in Germany. However, thanks to the advantages offered by Minijob and Werkstudent statuses, you will face fewer deductions than full-time employees and even have the chance to reclaim the taxes you paid.

#Student Health Insurance (Krankenversicherung) and Working Life

Health insurance is mandatory in Germany, and there are special regulations for students. When you start working, it is important to know how this will affect your health insurance.

#Student Health Insurance (KVdS - Krankenversicherung der Studenten)

Students enrolled at a Universität or Hochschule in Germany under the age of 30 can generally benefit from affordable student health insurance tariffs (KVdS) through public health insurance companies (e.g., AOK, TK, Barmer). This insurance covers basic health services during your stay and studies in Germany.

#Impact of Working on Health Insurance

When you start working, your employment status and earnings can affect your student health insurance status:

• Minijob: When doing a Minijob, as long as your monthly income does not exceed the Minijob limit (e.g., 538 Euro), your student health insurance will not be affected, and your affordable tariff will continue. Income from a Minijob does not increase your student health insurance premiums.
• Werkstudent: When working as a Werkstudent, you also remain covered by student health insurance as long as you stay below a certain income limit (generally around 475 Euro gross per month; these figures may change and vary between insurance companies). If this limit is exceeded, you may switch from student status to normal employee status and have to pay higher insurance premiums. This is usually referred to as "employment subject to social security contributions" (Versicherungspflichtige Beschäftigung). In this case, you and your employer pay health insurance premiums half-and-half, but the premiums will be higher than the student tariff.
• 20-Hour-Per-Week Rule and Insurance: The 20-hour-per-week rule is not only relevant for work permits but also crucial for maintaining your student health insurance status. Working a regular job exceeding 20 hours per week during the semester can lead your insurance company to classify you as a "full-time employee" and cause you to lose your student health insurance benefits. This means you would have to pay higher premiums. Working more than 20 hours per week during holiday periods does not affect your student status, as this is considered a "temporary" situation.

Health insurance is one of the most important topics in Germany. Before you start working, it is strongly recommended that you contact your insurance company to clarify any potential changes and your premium obligations.

#Other Important Things You Need to Know When Working in Germany

There are some other important points you should pay attention to when working as a student in Germany:

• Minimum Wage (Mindestlohn): Germany has a legal minimum wage, which is updated periodically. Employers cannot pay you below this minimum wage. As of 2024, the minimum wage is a specific Euro amount per hour (e.g., 12.82 Euro; these figures may change). Check the current minimum wage before you start working.
• Employment Contract (Arbeitsvertrag): As with any job, it is mandatory to sign a written employment contract (Arbeitsvertrag) when starting a job in Germany. The contract should include all important details such as your working hours, salary, job description, holiday entitlement, and termination conditions. Read the contract carefully before signing and ask questions about anything you do not understand.
• Steuer-ID (Tax Identification Number): You will need a Steuer-ID (Tax Identification Number) to start working in Germany. This number is automatically sent to you by post after you move to Germany and complete your residence registration (Anmeldung). If you have not received it or have lost it, you can request it from your local tax office (Finanzamt).
• Anmeldung (Residence Registration): When you first arrive in Germany or change cities, it is mandatory to complete your residence registration (Anmeldung) within a certain period. Without this process, you cannot complete many official procedures (opening a bank account, obtaining a Steuer-ID, insurance procedures).
• Banking: You will need a bank account (Girokonto) in Germany to receive your salary. Many banks offer free or low-cost accounts for students.
• Language Skills: Knowing German is a great advantage for finding a job in Germany. German language skills are essential, especially for jobs requiring direct customer contact (waitressing, sales assistant, etc.). However, for delivery jobs like Liferando or some international companies, English may be sufficient. Nevertheless, knowing German will make your life easier in daily life and bureaucratic procedures.
• Types of Jobs: Popular job types among students include waitressing, cashiering, working in supermarkets or warehouses, delivery services like Liferando, student assistant positions within the Universität (HiWi - Wissenschaftliche Hilfskraft), and Werkstudent positions related to their field of study.

This information will guide you to a smooth start in your working life in Germany. Always remember to act considering current legal regulations and your own situation.