Compulsory Retirement Insurance
In Germany, apprentices are mandatorily insured under the statutory retirement insurance during their dual vocational training (Ausbildung). This means that contributions to retirement insurance are deducted from their gross compensation. The purpose of this compulsory insurance is to enable apprentices to acquire retirement entitlements for old age or in the event of occupational disability.
Contribution Rate and Distribution of Contributions
The contribution rate for retirement insurance is uniformly 18.6% of the gross income. This contribution is equally shared between the training company and the apprentice. Thus, the individual share of the apprentice amounts to 9.3% of the gross income. The training company remits the entire contributions to the German Retirement Insurance.
Calculation of Retirement Insurance Contributions
The following example calculation demonstrates the deductions for retirement insurance with a monthly gross compensation of €1,000:
- Total contribution rate: 18.6% of €1,000 = €186
- To be paid by the apprentice: 9.3% of €1,000 = €93
- To be paid by the training company: 9.3% of €1,000 = €93
After deducting the share for retirement insurance, the apprentice is left with a net compensation of €907 in this example (without considering other deductions).
Acquisition of Retirement Entitlements
By paying contributions to retirement insurance, apprentices acquire entitlements to:
- Old-age Pension: The contributions paid are credited to the apprentice’s retirement account and later increase the amount of the old-age pension.
- Disability Pension: In the case of permanent occupational disability due to illness or accident, retirement entitlements for a disability pension may accrue.
- Survivor’s Pension: In the event of death, relatives of the apprentice, such as spouses or children, can claim survivor’s pension.
Registration with Retirement Insurance
The training company registers the apprentice with the German Retirement Insurance and ensures the timely remittance of contributions. The apprentice regularly receives a retirement information statement from retirement insurance, providing information on the retirement entitlements acquired so far.
Compulsory Insurance for Minor Compensation
Even apprentices whose compensation is below the mini-job threshold of €520 are subject to retirement insurance obligation. In such cases, the training company bears the contributions in full. This regulation differs from the treatment of regular minor employment, where an exemption from the retirement insurance obligation is possible.
Special Regulations for Certain Trainings
For apprentices in certain training models, such as dual study programs, specific regulations apply. In these cases, the retirement insurance obligation depends on whether the apprentice is primarily active as a student or as an employee. Consulting the German Retirement Insurance or the responsible health insurance can be helpful in these cases.
Important Notes on Retirement Insurance
Apprentices should regularly review their retirement account statements to ensure that contributions have been correctly recorded. For questions about retirement insurance or the amount of contributions, they can contact the German Retirement Insurance or their training company. Paying contributions during training lays an important foundation for later financial security in old age.