Social insurance deductions and Taxes

Taxes

Postdocs employed under a contract (e.g. a university or third-party funded position) are considered employees, and their remuneration is subject to taxation. In these cases, the institute automatically withholds taxes from your salary and transfers them to the state. The amount of tax you need to pay depends on your income and family status. At the end of the year, you have the opportunity to file a tax return, which can be done electronically or through a tax advisor.

If you work as a visiting scientist for up to two years, you may be eligible to pay taxes in your home country instead. This is based on double taxation agreements (DTAs) with certain countries that may allow university teachers and researchers conducting research at a public institution abroad for a maximum of two years, to remain taxable in their home country. You can check the details on the Federal Ministry of Finance website.

Fellowship holders who are considered guest researchers are usually exempt from income tax under German tax law. However, your tax status as a fellow will ultimately be determined by the German tax authorities. We recommend discussing tax-related matters with the organisation that awarded your fellowship and, if necessary, seeking advice from a tax adviser.

Social Insurance Deductions

The social security system in Germany includes health insurance, pension schemes, unemployment benefit, accident insurance and long-term care insurance.

Postdocs on a contract must contribute to the German social security system. The institute covers the employer’s share of health insurance, unemployment insurance, and pensions; while the employee’s contribution is automatically deducted from the salary. Additionally, postdocs are insured by the institute against work-related accidents and occupational illnesses.

Scholarship holders from specific scholarship schemes are exempt from social security contributions, meaning that scholarship holders must ensure that they have adequate insurance cover. This applies in particular to health insurance, liability insurance, and long-term care insurance. Scholarship holders and their family members are required to take out health insurance that provides the same level of cover as statutory health insurance in the Federal Republic of Germany.

Pension Plan

If you join the MPIPZ as a postdoc with a contract, you will contribute to the statutory pension system. As with all employees in Germany, pension contributions are shared equally between the employee and the employer. Since your employment falls under the Collective Wage Agreement for Government Service Workers (TVöD), participation in an occupational pension is mandatory. After your arrival, you will be offered different occupational pension plans to choose from.

For information on pension plans visit findyourpension.eu/
For more details on social security contributions refer to euraxess.de/

Pension and unemployment benefit options are often only reviewed at the end of a postdoc’s stay. However, it is crucial to understand the options from the start, as future benefits and other factors depend on decisions made at the start of your postdoc.