First Job: Health, Pension and Disability Cover in the Right Order

With your first job, several insurances change at once: your health insurance, your retirement provision and the question of occupational disability insurance (Berufsunfähigkeitsversicherung, BU). The order matters, because some decisions only make sense within certain time windows. This guide puts the steps in order.

Key points

• Family insurance ends as soon as your regular total income exceeds the limit of €565 per month.
• As an employee below the compulsory insurance threshold, you are generally subject to statutory health insurance.
• Occupational disability insurance becomes more expensive with each year you wait.
• Plan your health insurance and retirement provision together, not separately.
• Once your parents’ liability cover ends, you need your own private liability insurance.

Step 1: How do you sort out your health insurance?

After your studies, your income is the main factor in deciding which health insurance applies to you. Family insurance is tied to an income limit. Under section 10 of the German Social Code Book V (SGB V), your regular total income may not exceed one seventh of the monthly reference income (Bezugsgröße). In 2026, that amount was exactly €565 per month. With a first salary, you are therefore generally no longer covered by family insurance. How to decide between statutory and private cover is explained in detail in First Job Health Insurance: Statutory or Private?

Worked example: what might you pay in statutory health insurance?

The statutory health insurance contribution is paid half by you and half by your employer. For 2026, the general contribution rate is 14.6 percent. On top of that comes the additional contribution (Zusatzbeitrag), which averages 2.9 percent but differs from one health insurer to another.

Assumption: gross salary of €4,000 per month, average additional contribution of 2.9 percent.

Total contribution rate: 14.6 + 2.9 = 17.5 percent. Your share is half of that: 8.75 percent. Calculation: €4,000 × 0.0875 = €350 per month. The long-term care insurance contribution is not included in this example, nor is income tax.

As a compulsorily insured employee, you can generally choose your statutory health insurer yourself. How this choice is exercised is set out in section 175 SGB V. Compare the additional contributions and benefits before you decide, because the additional contribution differs from one insurer to another. If you choose private health insurance, different rules apply, which are described in the guide linked above.

Step 2: How do you organise your retirement provision?

Alongside your health insurance, you should check how you provide for retirement. This includes the statutory pension, for which the contribution rate in 2026 is 18.6 percent. The contribution assessment ceiling (Beitragsbemessungsgrenze) for the statutory pension insurance is €8,450 per month in 2026. If your employer offers occupational pension provision, ask whether salary conversion (Entgeltumwandlung) is available. It affects both taxes and social security contributions, so check it before you decide. A comparison with other options also belongs in this step. Make sure you plan your retirement provision and ongoing costs together, so that both fit your salary.

Step 3: Do you need occupational disability insurance?

Occupational disability insurance pays if you are expected to be permanently unable to carry out your most recently exercised profession because of illness, physical injury or age-related loss of strength. This is set out in section 172 VVG. Statutory benefits for reduced earning capacity (gesetzliche Erwerbsminderungsrente) are tied to strict conditions and often do not cover the loss of income.

The Verbraucherzentrale points out that the premium rises with age at entry. Those who start early usually pay less. At the same time, accident insurance does not replace occupational disability insurance, because it only pays for permanent invalidity caused by an accident, not for illness. A detailed classification can be found in Career Start After University: Your Guide to the First Job.

Step 4: How do you adjust liability and contents insurance?

With the end of your training, many people also lose co-insurance under their parents’ liability policy. Then you need your own private liability insurance. The same applies to your contents once you have your own flat. The details on liability cover are summarised in Parents’ Liability Insurance: How Long Students Are Covered. When you switch, make sure the cover is seamless. First secure the new cover, and only then cancel an existing policy, if you have one. If there is no contract even for a few days, a loss caused during that time is not insured.

Frequently asked questions

Do I have to switch to private health insurance right after my studies?

No. If you earn below the compulsory insurance threshold, you are generally subject to statutory health insurance. A switch to private health insurance is only possible under certain conditions. It is therefore worth looking at how your income develops before you commit.

From when does my salary count as being above the threshold?

What counts is your regular annual earnings. In 2026, the compulsory insurance threshold is €6,450 per month, or €77,400 per year. If your salary is above that, you can choose between statutory and private health insurance.

Can I earn money on the side while I am in family insurance?

Yes, as long as your regular total income does not exceed €565 per month. For marginal employment (geringfügige Beschäftigung, mini-job), a higher limit of €603 per month applies under section 10 SGB V (as of 2026). If in doubt, ask your health insurer.

Is occupational disability insurance worth it at the start of my career?

The start of your career is often a good time, because you are usually still young and the premium depends on your age at entry. Whether the policy makes sense for you depends on your personal circumstances and your financial commitments.

Do I have to register with the health insurer myself?

As a rule, your employer registers you with the health insurer you have chosen. It is important that you make the choice deliberately and tell your employer which insurer you want. Find out in advance which documents your employer needs from you for the registration.

What changes with employer contributions?

As an employee, you do not pay the health insurance contribution alone. Your employer pays the other half, as the calculation in the section on contributions shows. Private health insurance also includes an employer contribution, but it is calculated under different rules.

What to do next

1. Check your health insurance as soon as you know your first salary, and compare it with the income limits.
2. Clarify your retirement provision with your employer before you sign any contracts.
3. Plan occupational disability insurance early, taking into account health questions and your age at entry.
4. If you are unsure, have your documents reviewed in a personal consultation. The process is described under How we work (in German).

Related guides

• First Job Health Insurance: Statutory or Private?
• Career Start After University: Your Guide to the First Job
• Switching to Private Health Insurance at Career Start
• Parents’ Liability Insurance: How Long Students Are Covered

Sources: GKV-Spitzenverband: fact sheet on calculation figures (as of 1 January 2026), Section 10 SGB V, family insurance (accessed 26 October 2026), Section 172 VVG, occupational disability (accessed 26 October 2026), Verbraucherzentrale (as of 19 August 2026)

Last updated: October 2026. This guide is general information, not individual advice.