Visa and residence: Employer subsidy for private health insurance in Germany

Foreigners with a visa: How much is the employer's contribution to private health insurance (PKV)?

Anyone working in Germany as a foreign professional with a visa and opting for private health insurance can enjoy an important financial advantage: the employer's subsidy for private health insurance. This subsidy is regulated by law and essentially works according to the same principle as for those with statutory insurance – albeit with some special features that are particularly relevant for international employees.

Employer pays share of private health insurance

Employers are generally obligated to contribute to the costs of their employees' private health insurance ( Section 257, Paragraph 2 of the Social Code Book V ) – provided certain requirements are met. The insured person must be " exempt from insurance ," meaning their income must be above the annual wage limit. In 2025, this limit will be €73,800 gross per year. Only those who exceed this amount can switch to private health insurance and thus benefit from the employer subsidy.

The subsidy is based on what an employer would also pay for statutory health insurance. For 2025, the maximum employer subsidy for private health insurance is €471.32 per month . For compulsory long-term care insurance, an additional €99.23 is added. The exact amount of the subsidy depends on the statutory health insurance contribution rate and the so-called contribution assessment ceiling—the maximum income level up to which contributions are calculated. The decisive factor is always: the employer pays a maximum of 50 percent of the actual contributions—but never more than the legally stipulated upper limit.

The subsidy is completely tax-free. This means it is not considered taxable income and thus effectively reduces your own insurance costs. However, it is only paid for so-called comprehensive insurance plans. Supplementary insurance plans such as supplementary dental coverage or supplementary inpatient plans are not subsidized . Therefore, anyone who opts for supplementary outpatient insurance, for example, will not receive a subsidy.

Application for employer subsidy for foreigners with visa

Applying for the subsidy for foreigners is straightforward: The insurer issues a corresponding certificate listing the premium amount, scope of benefits, and the insured persons. This certificate is presented to the employer and is generally valid for up to three years – unless the premium or scope of benefits changes. The employer then takes over the follow-up process.

Those with private insurance should also remember to submit a new contribution statement to their employer if their contribution increases. This is the only way to adjust the subsidy accordingly. Those who neglect these formalities could miss out on several hundred euros a year.

Conclusion employer subsidy private health insurance foreigners

In summary: The employer subsidy for private health insurance is an attractive benefit for many international professionals working in Germany. It relieves financial burdens, provides predictability, and often makes private health insurance even more attractive than statutory health insurance. Anyone choosing this option should be well-informed, carefully review the requirements, and submit the necessary documentation to their employer in a timely manner.

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