Income tax in Germany: How much to pay, what benefits?

Have you ever wondered with a tax and insurance income of up to 47%, why Germans still work happily and do not have any complaints with government policies? The article below will help you explain why this strange thing happens!

Income tax in Germany: How much to pay, what benefits?

A. Social security contributions and taxes in Germany

According to current statistics, the tax rate in Germany is the second highest in the world, just behind Belgium. On average, a single person in Germany, after paying taxes, health insurance, pension insurance, etc., only receives about 53% in total salary. Meanwhile, for couples with children, on average they will keep 87 % of their salary.

A1. Income Tax

All workers in Germany are responsible for paying income tax based on their salary, except for students who work part-time with a salary of less than 450 EUR/month. In addition, if your total income is less than 8,130 EUR/year, you will receive a refund of 100% in taxes paid if you present an income declaration to the Department of Finance.

A2. Pension insurance

Similar to Vietnam, the German government also has a "pension fund" used to take care of the lives of retirees. And right from the time they start working, every worker in Germany with a salary of 850 EUR/month or more must pay about 9,45% of income into the pension fund, except those with income less than 450 EUR/month. Only those with an income of 450-850 EUR/month or working more than 20 hours/week will receive a deduction.

A3. Health Insurance

In Germany, all workers over 20 hours/week must pay health insurance and this is your great benefit and you will find it useful when you have any health problems. As for students working part-time, because you are receiving student insurance, you will not have to pay health insurance.

According to current statistics, the tax rate in Germany is one of the highest in the world.

B. Why do workers in Germany have to pay high taxes?
Many Vietnamese people, when they come to Germany to work and hear about a tax rate of up to 40-50% of income, immediately think that the German government is "exploiting" them. However, this is a completely wrong concept. For Germans, paying taxes is the social responsibility of workers to the community. In return, they will receive perfect social policies and benefits. Besides, a family of three in Germany can live healthy on about 3,000 EUR/month because all other issues are taken care of by the state.

The welfare system in Germany is currently the best in the world.

Here are three positive consequences of paying taxes and insurance in Germany:

• The State will use tax money to take care of the unemployed, the elderly, the disabled, the health system, education, transportation and general activities, helping to improve the quality of life.
• The German government is always 100% transparent in financial matters, so there will not be a situation where people are too rich in society (with a lot of income, they pay a lot of taxes), corruption will also be repelled;
• When everyone is cared for, has good social welfare, and there is no clear distinction between rich and poor, then crime will be minimized, and society will therefore become stable and safe. more complete.

Paying high taxes but German citizens will enjoy a "perfect" welfare regime.

So you know the reason why Germans pay taxes and insurance up to 40-50% in income and still work happily and without any complaints, right? Germany - one of today's European powers, is always a worthy place to live and is still open to welcoming students and workers from around the world.

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