Status: 12.10.2023, 19:15 PM
By: Carolin Gehrmann
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Security and a relatively high income – this is what the public sector offers its employees. But there are many more benefits, from improved retirement provision to sick pay.
Frankfurt – The public sector is an attractive employer for many people. Around 5.2 million civil servants are currently employed by the federal government, the federal states, municipalities and associations of municipalities and their work safeguards the community. According to the Federal Statistical Office, about one in ten employed persons in Germany works in the public sector.
The fields of activity in public administrationare diverse: from environmental protection and financial management to the police and the judiciary, as well as employees at schools or universities. In addition to the – often relatively high – salary according to the collective agreement for the public service (TVöD) or the salary for civil servants, many appreciate the security that comes with working in the public sector.
But in addition, such employment offers some other advantages for employees. However, the extras you receive also depend on whether you are a civil servant or not.
Supplementary pension in the public sector – company pension for better retirement provision
If you are employed in the public sector, you will receive a supplementary pension from your employer. This has been agreed in a collective agreement and is mandatory. This is a company pension scheme that is paid in addition to the statutory pension insurance in order to be better protected in old age.
The contributions to the supplementary pension scheme borne by employers and employees and the resulting pension amount are determined according to a points system. This is regulated in the Collective Agreement on Pensions (ATV). The respective financing is determined by the responsible supplementary pension institution itself. Since January 2023, employers have been paying 5.49 percent of the contributions for retirement provision in the West Settlement Association of the Federal and State Pension Institution (VBL). Employees pay 1.81 percent of a total contribution of 7.30 percent of their gross salary. In the East Settlement Association, the figure is 6.25 percent. Employees finance 4.25 percent of this themselves, the remaining two percent is borne by employers.
Entry into private health insurance – possible for employees in the public sector
In addition, employees covered by collective bargaining agreements can take out private health insurance. However, they are also subject to the income limits prescribed for membership. According to the Federal Ministry of Health, this is currently 66,600 euros. In the public sector, this is more likely to be possible for the top earners – for example, from salary group 12 onwards.
For many, private health insurance is attractive, as privately insured people often receive better benefits or get doctor's appointments faster. In addition, once agreed, the contribution remains the same, even if the income increases. However, there are many myths surrounding health insurance – because private health insurance is not always the best option.
Health and TVöD – There is a sickness benefit subsidy for employees covered by collective bargaining agreements
Employees who are ill for more than six weeks receive sick pay. According to the consumer advice centre, it amounts to 70 per cent of gross income, but no more than 90 per cent of net. Sickness benefit is paid by the health insurance companies, but contributions are due for pension, long-term care and unemployment insurance.
For public sector employees, the sick pay is topped up by the employer, so that they receive sickness benefit equal to their net salary. Prerequisite: The inability to work was not self-inflicted, i.e. caused intentionally or through gross negligence, as the German Civil Service Association explains. However, this is extremely rarely the case. Even if you play a high-risk sport and have an accident in the process, you usually retain the claim.
Performance bonus and inflation bonus – surcharges for employees according to TVöD
For additional motivation with all security, there is also the possibility for employees in the public sector to receive a performance pay. It consists of a performance bonus, a performance bonus and a performance bonus in addition to the table salary. TVöD §18, paragraph 1 states that this measure is also intended to strengthen personal responsibility and leadership skills. The payment is made by means of a performance assessment.
In addition, public sector employees benefited from an inflation bonus of 2023 euros in 3000. From March 2024, wages will increase for all employees covered by collective bargaining agreements – in principle.
The public service offers a number of advantages to employees. © Bartek Szewczyk/Imago
With civil servant status, civil servants benefit from even more advantages
Employees with civil servant status receive even more benefits than employees covered by collective bargaining agreements. In principle, they can join a private health insurance company. The state pays 50 to 80 percent of the aid. Private health insurance is therefore cheaper for civil servants. In addition, they don't have to worry about illnesses – even if they last longer. Even beyond six weeks, they receive their net salary in full.
In old age, you are also well provided for with a civil servant status. This is because the pension paid is based on the last salary, not on average earnings. Since you usually move up the ranks in the public sector – also in terms of salary – this procedure is therefore quite advantageous.