Contents (10 sections)
- How the employer contribution to private health insurance works
- Maximum employer contribution 2026 and 2027
- Worked examples: what your employer pays – and what you pay
- Family members: one maximum for everyone
- What the 2027 increase means for your own share
- Practical checklist for your payroll
- What the employer contribution does not cover
- When your salary falls below the threshold
- Conditions: the insurer must qualify
- Employer contribution vs public insurance: a fair comparison
- Employers pay half of a privately insured employee's health and long-term care premium, up to a legal maximum (§ 257 SGB V, § 61 SGB XI).
- The maximum is €613.22 a month in 2026 (€508.59 health + €104.63 care) and about €672.56 in 2027 (scenario: €557.81 + €114.75 under the draft care reform; €667.16 under current care law).
- Health and care parts are capped separately – each at half of the respective premium – so the combined maximum is only reached if both premiums are high enough.
- The contribution also covers dependants who would be family-insured in public insurance, but only within the same maximum; there is nothing towards a deductible.
- Self-employed people get no employer contribution; for employees it ends with the employment.
The employer contribution to private health insurance in Germany is half of the employee's health and long-term care premium, up to a legal maximum of €613.22 a month in 2026 and about €672.56 in 2027 (scenario based on the Federal Cabinet decision of 7 October 2026). It also covers dependants within the same maximum, but nothing towards a deductible, and self-employed people get none (§ 257 SGB V, § 61 SGB XI; as of October 2026).
How the employer contribution to private health insurance works
Employees who are exempt from public insurance because their salary is above the income threshold (Jahresarbeitsentgeltgrenze, JAEG) – or who were released from compulsory insurance – and who have a private policy receive a contribution from their employer, the Arbeitgeberzuschuss. It is paid out with your salary every month. Two laws set it:
- Health insurance part (§ 257 (2) SGB V): what the employer would pay for a publicly insured employee at the contribution ceiling – at most half of your actual health premium.
- Long-term care part (§ 61 (2) SGB XI): the employer's share of public care insurance at the ceiling – at most half of what you pay for private long-term care insurance.
Because both parts are capped separately, “half up to €613.22” is a simplification: you only get the combined maximum if both your health and your care premium are high enough.
Maximum employer contribution 2026 and 2027
| Per month | 2026 | 2027 (draft care reform) | 2027 (current care law) |
|---|---|---|---|
| Health insurance part (§ 257 SGB V) | €508.59 | €557.81 | €557.81 |
| Long-term care part (§ 61 SGB XI) | €104.63 | €114.75 | €109.35 |
| Maximum in total | €613.22 | €672.56 | €667.16 |
How it is calculated: health part = contribution ceiling × (half of the general rate of 14.6% + half of the average additional contribution) = €5,812.50 × 8.75% = €508.59 in 2026, or €6,375 × 8.75% = €557.81 in 2027. Care part = care ceiling × 1.8% = €104.63 in 2026, or €114.75 in 2027 if the draft care reform raises the care ceiling to €6,375. Both 2027 values are scenarios until the Bundesrat has approved the ceilings and the average additional contribution is published.
Worked examples: what your employer pays – and what you pay
The examples use assumed splits between health and care premium, because the care premium in private insurance is usually much lower than the health premium. Your insurer's certificate shows your own figures.
| Monthly premium (health + care) | Employer 2026 | You 2026 | Employer 2027 | You 2027 |
|---|---|---|---|---|
| €600 + €50 = €650 (single) | €325.00 | €325.00 | €325.00 | €325.00 |
| €900 + €60 = €960 (single) | €480.00 | €480.00 | €480.00 | €480.00 |
| €1,200 + €80 = €1,280 (single, comprehensive tariff) | €548.59 | €731.41 | €597.81 | €682.19 |
| €1,520 + €120 = €1,640 (you, spouse, 2 children) | €568.59 | €1,071.41 | €617.81 | €1,022.19 |
Up to a certain premium, your employer simply pays half. Above it, every extra euro is yours. A published example: ottonova states a total of €692.44 a month for a 35-year-old employee in its “Business Class 100” tariff, of which the employer pays €346.22 – exactly half (insurer's own example, reviewed 15 June 2026). Your own figures: the public vs private cost calculator shows your share for 2027, including family members.
Family members: one maximum for everyone
The employer contribution also applies to premiums for family members who would be family-insured (Familienversicherung) if you were in public insurance – typically a spouse without own income and your children (§ 257 (2) SGB V, § 61 (2) SGB XI). But the maximum does not multiply. In the family example above, four policies cost €1,640, and the employer pays about €618 in 2027 – the rest, over €1,000, is yours.
In public insurance, by contrast, the same family members would be insured free of charge. That is why the employer contribution rarely closes the gap for families on one income. The full comparison is in private health insurance with a family.
What the 2027 increase means for your own share
The higher maximum in 2027 only helps if your premium is above the 2026 cap. Three cases:
- Your health premium is below about €1,017 a month (twice €508.59): your employer already pays exactly half in 2026. Nothing changes in 2027 unless your premium changes.
- Your health premium is above that: the health part rises from €508.59 to €557.81 – up to €49.22 more from your employer each month in 2027.
- Your care premium: the care part rises from €104.63 to €114.75 under the draft care reform – but only if half of your private care premium is that high. Many private care premiums are lower, so for many employees this part is simply half of their care premium.
At the same time, public insurance becomes more expensive for high earners in 2027, because the contribution ceiling rises to €6,375 (draft). The income threshold checker shows whether and from when you may switch at all.
Practical checklist for your payroll
- Certificate: give your HR department the insurer's certificate showing the eligible health and care premiums – and renew it every three years.
- Family members: if you also insure your spouse or children privately, tell HR which premiums belong to them, so they are included within the maximum.
- Premium changes: after a premium adjustment, send the new figures; otherwise your contribution may be based on the old premium.
- Payslip: check that the contribution appears as a separate line every month.
- Tax: the employer contribution required by social security law is tax-free (§ 3 no. 62 EStG). For your own tax return, ask a tax adviser – this page is not tax advice.
What the employer contribution does not cover
Deductibles
Only the premium is subsidised. A deductible (Selbstbehalt) you pay when you claim is entirely yours.
Self-employment
Freelancers and the self-employed get no employer contribution – in public or private insurance. See health insurance for freelancers.
Retirement
The contribution ends with your employment. Pensioners with a statutory pension receive a subsidy from the pension insurance instead, based on their pension (§ 106 SGB VI).
Premium parts above the cap
If your premium rises above the cap, the increase is fully yours – also after premium adjustments.
When your salary falls below the threshold
The employer contribution to private insurance depends on you being exempt from public insurance. If your regular salary falls below the income threshold – for example after a move to part-time – you usually become compulsorily insured in public insurance again (under 55). Your employer then pays its share of the public contribution instead, and you can cancel your private policy retroactively within three months (§ 205 (2) VVG). If the threshold itself overtakes your salary, you may be able to apply for an exemption within three months (§ 8 SGB V) and stay private – with the employer contribution. More: switching back to public health insurance.
Conditions: the insurer must qualify
Your employer only pays if the private insurer meets legal requirements (§ 257 (2a) SGB V). Among other things it must calculate the insurance like a life insurance, offer the basic tariff, hand out the official information sheet before the contract, use most of its surplus for policyholders and waive ordinary cancellation. German private health insurers usually meet these requirements. In practice you give your employer a certificate from your insurer – and renew it every three years, as the law requires.
Expats with a foreign or international health plan should check this carefully: a policy that does not meet the German requirements does not qualify for the employer contribution, and it may not satisfy the legal obligation to have health insurance in Germany either.
Employer contribution vs public insurance: a fair comparison
The maximum employer contribution equals what the employer would pay for a publicly insured employee at the contribution ceiling. What differs is your own share. In public insurance an employee above the ceiling pays €729.94 a month in 2027 (childless, scenario), and family members are covered. In private insurance your share depends on your premium – €324.50 to €568.50 for a full-cover tariff at age 35 (Stiftung Warentest range; half of €649–1,137), more for a family. Details on the price side: what private health insurance costs.
Whether you may go private as an employee at all depends on the income threshold – €77,400 in 2026 and €84,150 in 2027 (draft). The rules for switching: private health insurance for employees. In German: Arbeitgeberzuschuss 2027 (source in German). For an honest first answer, use the 60-second decider.
Frequently asked questions
How much does my employer pay towards private health insurance in Germany?
Half of your private health and long-term care premium, up to a legal maximum: €613.22 a month in 2026 and about €672.56 in 2027 (scenario with a 2.9% average additional contribution and the draft care reform). The health and care parts are capped separately at half of each premium.
Does the employer contribution cover my family in private health insurance?
Yes, for family members who would be family-insured if you were in public insurance – for example a spouse without income and your children. But there is only one maximum for everyone together, so with a family your own share often rises sharply (§ 257 SGB V, § 61 SGB XI).
Does my employer pay towards a deductible?
No. The employer contribution is based on the premium only. A deductible you pay yourself when you claim is not subsidised.
Is the employer contribution the same as in public health insurance?
Similar in principle: in public insurance the employer pays half of the general rate and the additional contribution, plus its share of care insurance. For privately insured employees, the maximum employer contribution is exactly what the employer would pay for a public member at the contribution ceiling.
Do freelancers get an employer contribution to private health insurance?
No. Self-employed people and freelancers pay their full premium themselves – in private as in public insurance. Only employees receive the contribution.
What changes for the employer contribution in 2027?
The contribution ceiling rises to €6,375 a month (draft), so the maximum employer contribution rises to about €672.56 – the exact value depends on the official average additional contribution, due by 1 November 2026, and on the care reform.
Sources
- § 257 SGB V – contribution subsidies for employees
- § 61 SGB XI – contribution subsidies for long-term care insurance
- Federal Government: contribution ceilings 2027 (Cabinet decision) – 7 October 2026, Bundesrat pending
- § 242a SGB V – average additional contribution
- § 55 SGB XI – long-term care contribution rate
- § 3 EStG – tax-free income (no. 62: employer contributions required by social security law)
- § 106 SGB VI – subsidy to health insurance for pensioners
- ottonova Expat Guide: costs of private health insurance – insurer's own example, reviewed 15 June 2026
This article provides general information on health insurance in Germany (as of 10 October 2026). It does not replace individual advice. Which solution suits you depends on your personal situation, e.g. age, health, income, family and length of stay. Despite careful review we cannot guarantee completeness and accuracy; laws and tariffs change. It is not immigration advice: whether your insurance is sufficient for a visa or residence permit is decided by the German mission abroad or your immigration office. Publisher: German-PKV.de. German-PKV.de is not an insurance broker and does not provide insurance, legal or tax advice; individual advice is provided exclusively by specialised cooperation partners licensed under § 34d GewO.