Deductions for Social Security
All trainees are subject to social security contributions. This means that contributions to the various branches of social security are deducted from their gross compensation (Vocational Training Compensation) (). The contributions are each borne equally by the training company and the trainee. The social security contributions include:
- Health Insurance: The contribution rate is 14.6% of the gross income, plus an additional insurer-dependent surcharge (approximately 1.3%).
- Long-term Care Insurance: The contribution rate is 3.05%, and 3.4% for childless trainees aged 23 and over.
- Pension Insurance: The contribution rate is 18.6% of the gross income.
- Unemployment Insurance: The contribution rate is 2.6% of the gross income.
Social security contributions are directly withheld by the employer and forwarded to the responsible insurance carriers.
Example Calculation of Social Security Deductions
With a gross compensation (Vocational Training Compensation) of €1,000, the following deductions apply:
- Health Insurance: approx. €75
- Long-term Care Insurance: approx. €15
- Pension Insurance: approx. €93
- Unemployment Insurance: approx. €13
Total deductions for social security in this example amount to approximately €196, resulting in a net compensation of about €804.
Deductions for Taxes
The vocational training compensation is subject to income tax if it exceeds the annual basic allowance. The basic allowance is currently €10,908 (as of 2025). If the compensation is below this amount, no income tax is due. If the compensation exceeds the basic allowance, tax deductions are made according to the trainee’s tax class.
Tax Classes and Their Significance
The amount of income tax depends on the trainee’s tax class. Unmarried trainees without children fall into tax class I, while married trainees are typically classified into tax class III (if the spouse has no income) or IV. Different tax classes can result in varying deductions.
Additional Deductions
- Church Tax: Church tax amounts to 8% or 9% of the income tax, depending on the federal state. It is only deducted if the trainee belongs to a tax-collecting religious community.
- Solidarity Surcharge: The solidarity surcharge is 5.5% of the income tax but is only applicable to high incomes and does not affect most trainees.
Important Notes on Deductions
Social security deductions are mandatory and provide protection for the trainee in areas such as health, pension, and unemployment. Exemption from social security obligations is not possible in dual vocational training. Taxes, on the other hand, are only applicable if the compensation exceeds a certain amount. Trainees should regularly review their pay slips to ensure that deductions have been correctly calculated.
Options for Tax Refunds
If income tax has been paid during the year, trainees may receive a refund by submitting a tax return. This is especially the case if the basic allowance has not been fully utilized or if significant work-related expenses, such as commuting costs to vocational school, can be claimed.