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Author: MW Expat

Here’s to new chances in 2021

Posted on by MW Expat

We welcomed the new decade 2020 with lots of plans: to travel, excel at studies, grow at work, relationships, finances and more. What comes to mind when you take stock of how much progress you’ve made on those ambitions and plans? We remember the lifestyle changes we made – work from home, home schooling, more time for friends and family, new ways of celebrating (Zoom birthday parties & graduations), taking nothing for granted (takeaways from fine-dining restaurants anyone?) and some unpleasant memories of losing a loved one to the pandemic.

We look forward to 2021 helping us find a way to a new ‘normal’

We would like to reflect on our learnings as individuals from this past challenging year:

  1. Health is wealth – this is never going to be a cliché saying anymore. Instead, it is a lesson learnt, unfortunately for some in a hard way. But it is never too late to take charge of our physical and mental health. Many of us embarked on the ‘healthy body & mind’ journey. Give your body and mind a chance to be ready to fight for you when you need it to!

  2. Family is forever – remember, family is not only people who share your blood. We strengthened our bond with our people, our loved and trusted ones. More than ever, we deserve to pamper ourselves with each other’s love and care.

  3. Save for the rainy day – again, this has a new meaning for many of us now. How many of us thought we were in control of our future? We had our lives planned out and right on track. Then we were hit with the longest rainy day imaginable in the form of this pandemic. Loss of job became a reality for millions, along with provisioning for difficult times or another pandemic.

    The pandemic has been a great leveller. Our perspective of who and what really matters for us to function as individuals and society has changed. The world learnt a new definition of what it means to be truly developed. We are all fortunate to be in Germany with a sound healthcare ecosystem (hospitals, insurance etc.) and a social setup that cares for and supports people in tough times like these.

2021 will be unpredictable both for individuals and businesses

We would like to plan and set some goals, yet again, for the new year. This time, we hope it’s going to be different – but how can we know? Let’s discuss it:

  1. Take care of and improve your physical and mental well-being – get regular health checkups and check if your insurance covers for preventive interventions.
  2. Establish a good work-life balance to ensure spending time with loved ones.
  3. Gain knowledge or learn a new skill.
  4. Review and fine-tune your financial health and readiness to handle any future exigency. Revisit your expenses on insurance and financial instruments.
  5. Plan for your retirement – it’s never too early to start, securing a safe future.
  6. Celebrate and appreciate the small victories in life.

Step into the Mysterious Black Forest

Posted on by MW Expat

Socialising will be somewhat different for most people, with all the regulations currently in place, but that should not deter you from seeking out some exciting and less crowded activities to do within Germany. Stepping out into nature provide ample space, fresh air and vitamin D; a great way to get out of the confines of the cities and our houses.

Depending on your level of experience and confidence, there are many outdoor activities that will appeal to all, beginner to expert. The broad differences in landscapes found throughout Germany are astonishing, from the Baltic coastline in the North, the enchanting Black Forest, to the base of the Allgäu Alps. Each region offers its own unique topography, and with that comes a wide range of possibilities to keep you entertained. With Germany offering over 7000 trails to choose from – hiking, walking and trail running are great ways to indulge in nature all year round.

Exploring the vast Black Forest

Well known throughout history, specifically through the writings of the Brothers Grimm, this forest expands for 6000 square kilometres, offering numerous hiking opportunities. It is dotted with historic villages, some dating back to the Gothic tribes that settled in the forest escaping from the reign of the Roman Empire. With the rolling grass hills, ancient villages and heavily wooded areas, the Black Forest offers great options for hiking and walking trips.

  1. Seeblick – Mummelsee Loop from Achert

    Seeblick is a beginner to intermediate level hike, with only a 5.3 km round trip. This is an easy 2-hour outing, taking your time to enjoy the sights on the way. The trail starts with a single-track path that is easy to navigate with the signage into the forest. Roughly 1.5 km in, some sights to look out for are the ancient rock slabs that have historical markings of past settlers while enjoying a slight increase in elevation. The next checkpoint would be the Hornisgrindeturm und Aussichtsplateau, a 360-degree lookout tower at the peak of Hornisgrinde (1,164 m), offering a great view of the expanse of the Black Forest and the surrounding peaks. On the last half of the trip, the path descends onto the Mummelsee, a small lake with some shops to grab a quick snack on the go. Always a good bet: visit the baker in the parking area – the last stretch of the hike will lead you back to the starting point.

    MW-expat-hiking-Mummelsee-germany2

  2. Schluchseer Jägersteig – Bildstein Loop from Schluchsee

    For something a bit lengthier, this hike is 13.8 km, with a good portion of it being on a wide gravel road – making it quite a comfortable hike. Starting from the Schluchsee Train Station, you will walk about 1 km along the Schluchsee Lake until the entrance of the hike. After 200 meters on this footpath, you will be presented with an overlooking view of the Schluchsee from within the trees. The path then continues through the pine forest for another 7 km, when a viewing point will provide the clearest (depending on the weather) sight of the magnificent lake. Continuing on the hiking path, you will arrive at the water’s edge of the lake, this spot has pleasant beaches and rocks to relax on and have a picnic or rest if needed. The last stretch of the trail runs along the lake’s shoreline, leading back to the train station.

  3. Edelfrauengrab-Wasserfälle – Deglerbad (Noble Woman’s Grave waterfalls)

    This hike is relatively advanced, offering a few impressive waterfalls on the way, with particular reference to the first – the Nobel Woman’s Grave. This first highlight is roughly 3.8 km into the hike – a great spot to take a moment to read the story behind the name, located on a white signboard, near the elevated footbridge to view the waterfall. After another 250m, be sure to take a side view of the ancient stone bridge from the Roman times. Continue for another 150m and you will arrive at a waterfall forming a small pool halfway down the face of the cliff.

    Less than 1 km further you will find a Schnappsbrunnen (a liquor fountain), which serves as one of two of these ‘fountains’ on the trail. This drinks stop offers a great place to rest your legs while sipping on a well-deserved schnapps, beer or soft drink. Many benches and sitting areas allow for a relaxing picnic, just remember to buy some snacks from the local baker and shop before starting the hike, in Ottenhöfen. Also, a reminder to bring change, as the payment method is depositing the money in a cash box at the ‘fountain’. Once rested and fuelled up, a short stretch on the trail will take you to a breath-taking viewing point – Herrenschrofen. For another 4 km, the path runs through the forest and opens up to rolling farmlands, overlooking the village. After this relatively long stretch, hikers are awarded with the last Schnappsbrunnen. The last 2 km of this hike runs along farm roads back into Ottenhöfen.

    It is advised with these hikes to consider the weather conditions (some trails could have snow or ice hazards), transportation, and the level of difficulty. Hiking with at least one other person is safest and advised. Overnighting in one of the small villages is always a tranquil getaway, but day trips are very easy. Public and private transport are both available to reach the destinations.

    There are still tons of these exciting trails to be discovered. Even if you haven’t always been enthusiastic about getting active outside, it is always a good time to find ways you can enjoy it and increase your general health while doing so!

    We are always available to speak about any of your questions regarding finances, health- and general insurance in Germany.

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Guide to understanding your payslip

Posted on by MW Expat
payslip-img

  1. Total gross salary

    The gross salary includes the income, the employee’s social security contributions and the tax to be paid to the tax office.

  2. Tax

    The tax deduction is transferred by the employer to the tax office. The amount is calculated progressively: The more the employee earns, the more tax is withheld. The normal tax bracket ranges from 14% to 42%, normally the truth lies somewhere in the middle.

  3. Church tax

    Church tax in Germany is 8% or 9% depending on the federal state. It is paid by the employer for Catholic or Protestant church members via the state to the churches. The charges are calculated on your income tax.

  4. Solidarity surcharge

    Since 2021, the solidarity surcharge has been waived up to an annual income of around 73000 euros. From this income upwards, the solidarity tax is charged at 5,5% and is calculated from your tax bill. The solidarity tax was introduced to pay for the reconstruction of East Germany after Germany became unified again.

  5. Total tax to be paid

    Income tax plus solidarity surcharge and church tax.

  6. Employee contribution to statutory health insurance

    The total cost of statutory health insurance is 14.6%, with the employer and the employee (7.3%) each paying half. The employee may have to pay an additional contribution of about 1.3%, as determined by the health insurance provider.

  7. Employee contribution to statutory pension insurance

    This is paid in equal parts by the employer and the employee. It amounts to a total of 18.6% of the gross wage.

  8. Unemployment insurance

    A total of 2.4% of the salary. Employer and employee each pay half.

  9. Compulsory long-term care insurance

    A total of 3.05% is paid for this. Half from the employer and half from the employee, childless employees have to pay a further supplement of 0.25% as of the age of 23

  10. Total deductions for social insurance (employee’s share)

  11. Net salary

    This is the amount transferred to the employee’s account.

  12. Total tax payments

    Income tax, solidarity surcharge and church tax accrued in the year

    13. Total social security payments

    Health insurance, pension insurance, unemployment insurance and compulsory long-term care insurance accrued in the year

    Social security contribution payable by the employer in the month

    That is a lot of money taken off your gross salary every month and the strange thing is that we find with dealing with expats every day that most of them do not have a clue as to why they are losing so much of their gross income. To be fair that German state takes a lot, but they also give a lot back if you know your way around the system. In the following two articles, we will show you ways of saving taxes and social security costs whilst having better health care cover and building for your future.

    *The above illustration and text are all based on the average employee here in Germany. There are many exceptions to these rules and if you would like to be 100% sure about your personal situation then it is best to seek professional advice from either a qualified accountant or a lawyer specializing in social law.

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Public vs Private Health Insurance in Germany

Posted on by MW Expat

Public vs Private Health Insurance in Germany is a topic of great importance for expats who are planning to move to or already living in Germany. The German healthcare system is known for being one of the best in the world, but navigating the various types of health insurance can be a confusing task. In this blog, we will discuss the differences between public and private health insurance in Germany, including the benefits and drawbacks of each. By the end of this article, you will have a better understanding of which type of insurance is best for you and your family’s needs.

Public vs Private Health Insurance

Whether you already live in Germany or plan to move there soon, there are many exciting perks to look forward to. You have various career opportunities, an excellent infrastructure, a friendly environment, and much more. 

However, choosing the right kind of health insurance can be a little confusing as well. You have to choose between private health insurance and public health insurance in Germany. But when it comes to private vs. public health insurance in Germany, what is the difference, and which one should you opt for? Keep reading to find out.

Public Vs Private Health Insurance

Income

Income is one of the biggest determining factors when choosing between private and public health insurance in Germany. Your income level can determine which health insurance you choose and also how much your health insurance covers.

If your income is below €64350 per year, your only option is to go for public health insurance, and you are insured on a compulsory basis. This means you must have public health insurance while you are living in Germany, and additionally, public health insurers will also be forced to accept your case, even if you suffer from any severe underlying health conditions.

If your income is above €64350, you have the option to choose between public and private health insurance in Germany. Since you have this option, public health insurers are also not forced to accept you unless it is your first employment in Germany and you are coming from another state system.

If you are self-employed and come from another European public system then you can choose which system you would like to join regardless of your expected income. If you do not come from another Public insurance then private insurance is often your only choice.

Public health insurance is usually less expensive when you have a low income. Since you are not earning that much, you don’t have to pay that much for your health insurance. Even if you suddenly lose your job or retire, your health insurance will match your income and stay affordable.

The main difference between the two systems is that the public insurance is a family insurance, this means that you go to work and unless your family earns their own income they are automatically insured under your one premium. With the private insurance everybody has to insure themselves meaning that if you have a large family that is not working then private insurance will work out to be more expensive.

The other side of that is that if you are young, healthy and single then private insurance will not only be a lot cheaper for you but also offer you far better coverage.

Occupation

Your occupation is the second most crucial factor determining your health insurance. In most cases, if your income is above €64350, you can choose between private and public health insurance. However, your salary can determine your exact contribution to your health insurance every month.

For instance, if you are an employee and earn more than €58050 every year, your maximum monthly contribution comes to about €460, while your employer pays the other half. If you are working as an apprentice and earn less than €325 every month, your employer has to bear the total cost of your insurance.

Similarly, if you are a freelancer and earn more than €58050 annually, your maximum insurance payment can go up to €920 every month. On the other hand, if you make less than €12740 every year, your minimum payment is €180 per month.

If you are unemployed at the moment, in that case, you also have to pay a minimum of €180 per month. However, you also have the option of using your spouse’s insurance for free. Moreover, once you register your unemployment status with the government, they bear the full expense of your health insurance.

Treatments and Coverage

Another significant difference between the two is in the coverage and level of treatment. Public health insurance usually offers limited coverage and only covers the basic treatments. If you want more coverage for certain specific conditions, you will have to opt for private supplementary health insurance and pay more for that.

Moreover, you can also expect better treatment with private health insurance as the doctor can charge more money, this does not affect you because you will be reimbursed by the private insurance company and you only have to pay your fixed premium. One of the very important factors here is the speed at which you will get appointments to see a specialist, with public insurance it can often take weeks.

Paperwork

Public health insurance is usually much more convenient as you need to get through loads of paperwork. Most of the process is handled by the insurance company and doctors directly, and all you need to do is show up with your insurance card. The drawback with this system is that it is not transparent as you do not get to see the diagnosis that the doctor registers with the public health provider, this often leads to problems when applying for other kinds of insurances or jobs where your state of health is relevant.

All private providers have apps where you just have to take a photo of the invoice from the doctor and then you will be automatically reimbursed to your account. Once you have the reimbursement you then have to transfer the amount of the invoice to the doctor, this is slightly more work but you stay in control.

Pre-existing Health Conditions

If you have certain pre-existing health conditions, are an employee, and make less than €64350 per year, public health insurance can be a better choice. The insurers can’t refuse to offer you insurance, and you don’t have to pay extra for your pre-existing conditions either.

If you have certain pre-existing health conditions, are an employee, and make less than €64350 per year, public health insurance can be a better choice. The insurers can’t refuse to offer you insurance, and you don’t have to pay extra for your pre-existing conditions either.

Final Thoughts

Whether you decide to go for private or public health insurance, either way, you must sign up for some insurance policy. Accidents and medical surprises don’t come with a warning. Even if you’re feeling perfectly healthy today, there’s no guarantee for tomorrow. Under German social law Health care is mandatory and everybody moving to Germany has to sign up to a compliant plan within one month of arrival.

Therefore, a health insurance plan is your best bet for efficient medical treatments and peace of mind rather than worry about future medical costs. Get in touch with MW Expat Solution Services GmbH for more expert advice and guidance on how to get your health insurance in Germany.

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Get expert advice on the best solutions for expats – personalized to fit your unique needs. Start planning today!