Independent workers with offspring likewise qualify for a mother's pension benefit. - Self-employed parents with children can also claim maternity benefits.
Self-employed individuals in Germany can secure both parental allowance (Elterngeld) and a pension by understanding the requirements and options related to social security and voluntary contributions.
### Parental Allowance (Elterngeld) for Self-Employed
Parental allowance is available for up to 12 months for one parent or up to 14 months if both parents share the leave. It generally amounts to 65–67% of the parent’s average net monthly income before the child’s birth, subject to minimum and maximum caps. Parental leave itself is unpaid but job-protected; parental allowance provides income support during this time. Both mothers and fathers qualify for parental leave and allowance. Self-employed parents can apply for parental allowance similarly to employed parents, provided they meet residency and income documentation requirements. Maternity allowance (Mutterschaftsgeld) for self-employed women is only available if they voluntarily pay health insurance contributions that include sickness benefits.
### Securing a Pension as a Self-Employed Person
Self-employed individuals in Germany generally are not required to pay mandatory social security contributions, including statutory pension insurance. However, self-employed individuals can make voluntary contributions to the statutory pension insurance scheme to build entitlement for a pension. Voluntary pension contributions allow self-employed individuals to secure pension benefits similar to employees, who automatically contribute 9.3% of their salary (matched by employer) to pension insurance. The pension insurance contribution rate is 18.6%, but self-employed persons contribute voluntarily at a rate they choose, up to an income ceiling of EUR 96,600 annually. Making voluntary contributions is advisable for self-employed persons to ensure future retirement benefits, including parental allowance pension-related benefits if applicable.
### Requirements for Voluntary Contributions
The individual must register for voluntary statutory pension insurance. Contributions can be paid regularly or as lump sums. Voluntary contributions require continuous payment to build pension claims. There are no mandatory payments, but opting out means no statutory pension entitlement unless covered by other schemes.
### Summary Table
| Aspect | Paid by Employees | Self-Employed | |----------------------------|----------------------------|---------------------------------| | Mandatory pension insurance| Yes (9.3% each employer/employee) | No, but voluntary possible | | Parental allowance eligibility| Yes | Yes, if resident and documented | | Maternity allowance | Yes | Only if voluntary health insurance with sickness benefits paid | | Voluntary pension contributions| N/A | Available to build pension rights |
In conclusion, self-employed individuals need to voluntarily contribute to statutory pension insurance to secure future pension benefits, including those related to parental allowance, and must pay voluntary health insurance contributions with sickness benefits to be eligible for maternity allowance during parental leave. Parental allowance itself is accessible if income and residency criteria are met. With each child, one parent can have three years of pension credited. If self-employed individuals have only one child or two children and divide the child-rearing periods, they can supplement the two missing years for payment by voluntary payments. The child-rearing period is valued at a monthly pension of 122 Euro at the current pension value for three years.
- To secure entitlement for a pension similar to employees, self-employed individuals can opt for voluntary contributions to the statutory pension insurance scheme, which also helps build eligibility for pension benefits related to parental allowance.
- Apart from making voluntary contributions to statutory pension insurance, self-employed individuals may also consider investing in health-and-wellness, specifically by paying for voluntary health insurance with sickness benefits, to be eligible for maternity allowance during parental leave.
- In addition to managing financial affairs related to parenting and personal-finance, self-employed individuals may also benefit from wealth-management strategies to ensure a comfortable retirement after a lifetime of self-employment.
- Other community institution services such as vocational training could be utilized by self-employed individuals seeking skill improvement or upgrading in their respective fields, which might contribute to the enhancement of their business and, in turn, their financial stability.
