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UPDATED JUL 7, 2026💡 What to expect for employee benefits when you hire in Germany through Toku. German employees receive comprehensive statutory coverage funded through payroll, and Toku adds a fully employer-paid supplemental health plan with a €1,500 annual health budget.
At a Glance
| Item | Detail |
|---|---|
| Statutory coverage | Health, pension, unemployment, long-term care (shared ~50/50), accident insurance (employer-paid) |
| Supplemental health | Hallesche FEELfree - €1,500/year flexible health budget |
| Supplemental cost | €42.24/month per employee - 100% employer-paid, €0 to the employee |
| Enrollment | Automatic on start date; no medical questions, no waiting periods |
| Pre-existing conditions | Covered from day one |
| Opt-out | 16-day window after enrollment |
Statutory Benefits
Germany's social insurance system is mandatory and non-waivable, funded via payroll contributions split roughly equally between employer and employee:
| Program | Employee | Employer |
|---|---|---|
| Health insurance (GKV) | ~7.3% + fund add-on (~0.8 - 1.6%) | ~7.3% + add-on |
| Pension insurance | ~9.3% | ~9.3% |
| Unemployment insurance | ~1.3% | ~1.3% |
| Long-term care insurance | ~1.7% | ~1.7% |
Employees choose their own statutory health fund (Krankenkasse - TK, Barmer, DAK, AOK, etc.) at onboarding, or provide their private (PKV) policy details instead. Statutory accident insurance covers workplace and commuting accidents and occupational disease - it's 100% employer-paid, automatic from day one, and billed annually rather than through monthly payroll.
Supplemental Health Through Toku: Hallesche FEELfree
Every full-time Germany employee gets a flexible €1,500 annual health budget through Hallesche, usable across: vision and optical (glasses, contacts, LASIK up to €180/year), dental (fillings, crowns, implants; cleaning/bleaching up to €60/year), physiotherapy and massages, hearing aids, medical aids, all prescribed medications, and alternative care such as acupuncture and osteopathy.
There are no medical questionnaires, no waiting periods, and no exclusions — pre-existing conditions are covered from day one. Claims are submitted directly via the Hallesche4u app or email.
Costs & Who Pays
| Cost | Amount | Who pays |
|---|---|---|
| FEELfree premium | €42.24/month (~$49) per employee | 100% Toku (billed to client) |
| Statutory contributions | Per table above | Shared employer/employee via payroll |
Enrollment
Enrollment in FEELfree is automatic on the start date — no action needed. Employees have a 16-day opt-out window via their Toku account (Benefits tab); after it closes, unenrollment isn't possible until renewal.
Retirement
Retirement is provided through Germany's statutory pension insurance (~9.3% employee / ~9.3% employer via payroll). No supplemental occupational pension is included in the standard package; employees have a legal right to convert salary into an occupational pension - ask Toku if you want to offer this.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Questions? Contact [email protected].