German gross salary employer contributions calculator

Calculates German salary employer contributions for a gross number.

This program does not calculate employee contributions breakdown, only the employer part.

Why

I wanted to write something in Fortran ages ago. As I was reading about Flang, I got curious. So, there we are. Some reasonable thing for Fortran...

Getting Fortran and fpm on macOS

GFortran comes with gcc, so on macOS it is going to be enough. fpm is the Fortram package manager.

# This is important, the fpm Formulae uses latest gcc, which right now is 12.
# But that's not going to work because fpm expects that the latest gcc is 11...
# It's a bit of a mess. First, install fpm...
brew tap awvwgk/fpm
brew install fpm

Now, fix the gcc story:

brew install gcc@11
# this is a link:
rm /usr/local/opt/gcc
# fix the link
ln /usr/local/Cellar/gcc\@11/11.3.0 /usr/local/opt/gcc
ln /usr/local/Cellar/gcc\@11/11.3.0/lib/gcc/11 /usr/local/Cellar/gcc\@11/11.3.0/lib/gcc/current

fpm will work now.

Build

Check out the project and build it:

git clone /~https://github.com/radekg/fortran-german-salary.git
cd fortran-german-salary/
fpm install

Examples

Gross annual €75k, 12 salaries:

~/.local/bin/german_salary --gross 75000

Gross monthly €6.1k, 12 salaries:

~/.local/bin/german_salary --gross 6100 --mode month

Gross monthly €6.1k, 14 salaries:

~/.local/bin/german_salary --gross 6100 --salaries 14 --mode month

Gross annual €75k, 13 salaries, Sachsen:

~/.local/bin/german_salary --gross 75000 --salaries 13 --bundesland Sachsen

Output

This program produces human readable output only, example:

Bundesland:                       Nordrhein-Westfalen
West/East:                        West
Currency:                         Euro
Monthly gross salary:                6100.00
Annual gross salary:                85400.00
# of salaries:                            14
--------------------------------------------|
Contributions breakdown:
  Kranenversicherung:                5350.27
  Pflegeversicherung:                1032.81
  Rentenversicherung:                7942.20
  Arbeitslosenversicherung:          1024.80
--------------------------------------------|
Umlagen:
  U1 (Arbeitsunfähigkeit):           1366.40
  U2 (Mutterschaft):                  555.10
  U3 (Insolvenz):                      76.86
--------------------------------------------|
Total annual employee cost:        102748.44

CLI options

Required switches:

• --gross value, -g value: Gross salary.

Optional switches:

• --mode value, -m value, value in: annum,month, default value annum: Gross salary mode.
• --salaries value, -s value, value in: 12,13,14, default value 12: Number of salaries.
• --bundesland value, -b value, value in: Baden-Württemberg,Bayern,Berlin-Ost,Berlin-West,Brandenburg,Bremen,Hamburg,Hessen,Mecklenburg-Vorpommern,Niedersachsen,Nordrhein-Westfalen,Rheinland-Pfalz,Saarland,Sachsen,Sachsen-Anhalt,Schleswig-Holstein,Thüringen, default value Nordrhein-Westfalen: Bundesland.
• --year value, -yr value, value in: 2022,2023, default value 2023: Year for which the calculation should be done.
• --kv-personal-contribution-percent value, -kvp value, default value 1.2: Personal health insurance contribution, in total percentage.
• --u1-contribution-percent value, -u1 value, default value 1.6: The work incapacity protection contribution, in total percent (U1).
• --u2-contribution-percent value, -u2 value, default value 0.65: The maternity protection contribution, in total percent (U2).
• --help, -h: Print this help message.
• --version, -v: Print version.

German social insurance for employers in a nutshell

Given a gross salary, in 2023:

• Krankenversicherung is 14.6% from which the employer pays half = 7.3%, employee pays the other half.

  • An employee contributes individual additional contribution rate (Individueller Zusatzbeitragssatz) which depends on the Krankenkasse they belong to. In case of TK, this is 1.6% from which the employer pays half, the employee pays the other half.
  • Total Krankenversicherung paid by the employer accounts to 7.3% + 0.8% for an employee in TK.
  • Calculated based on a single gross salary with a top limit of €4837.5 - min(€4837.5, single gross salary) * rate.

• Pflegeversicherung is 3.05%:

  • employee located in Sachsen, employer pays 1.025%, employee pays 2.025%.
  • employee located outside of Sachsen, employer pays half = 1.525%, employee pays the other half.
  • Calculated based on a single gross salary with a top limit of €4837.5 - min(€4837.5, single gross salary) * rate.

• Rentenversicherung is 18.6% from which the employer pays half = 9.3%, the employee pays the other half.

  • Calculated based on a single gross salary with a top limit of:
    • employee located in Western Bundesland: €7050 - min(€7050, single gross salary) * rate,
    • Eastern Bundesland: €6750 - min(€6750, single gross salary) * rate.

• Arbeitslosenversicherung is 2.4% from which the employer pays half = 1.2%, the employee pays the other half.

  • Calculated based on a single gross salary with a top limit of:
    • employee located in Western Bundesland: €7050 - min(€7050, single gross salary) * rate,
    • employee located in Eastern Bundesland: €6750 - min(€6750, single gross salary) * rate.

• Umlage 1 (Arbeitsunfähigkeit) depends on the Krankenkasse of the employee, for TK this value is 1.6% for standard reimbursement rate of 70%.

• Umlage 2 (Mutterschaft) depends on the Krankenkasse of the employee, for TK this value is 0.65%.

• Umlage 3 (Insolvenz) is statutory and in 2023 will be 0.15%, the employer pays the full amount.

Single gross salary

I use this term instead of monthly gross salary because in Germany:

• An employee receives statutory 12 salaries.
• An employer may decide to pay 13th and 14th salary.
  • In this case, the single gross salary is calculated simply by diving annual gross salary / number of salaries. For example, an employee at €75000 gross / annum implies:
    • €6250 gross at 12 salaries,
    • €5769.23 gross at 13 salaries (13th salary paid either in July or November),
    • €5357.14 gross at 14 salaries (usually 13th salary paid in July, 14th salary in November).

Any other variable like: age, number of children, any additional pension fund, does not affect employer's contributions, only employee's net income.

Where do I find the latest numbers?

You can find all important information here:

• For 2022.
• For 2023.

The U1 and U2 values are health insurance provider specific. For the exact values of a specific Krankenkasse, consult their websites. For example:

• TK: Wie hoch sind die Umla­ge­sätze U1 und U2?

Can I fully rely on those calculations?

To the best of my knowledge, the numbers produced by this program are exact. They have been validated against multiple online calculators and DATEV calculations.

• I do not give any warranty.
• Salary calculation and individual rates are a moving target and this program may not fully reflect reality.

Always consult a tax accountant. Of course, PRs are welcomed.