Switching to private health insurance (PKV) at career start is only possible once you leave compulsory statutory insurance (gesetzliche Versicherungspflicht). That does not happen with your first salary, but when your annual earnings exceed the earnings threshold (Jahresarbeitsentgeltgrenze). This guide explains the rule, the key date and the deadlines for statutory health insurance (GKV).
Short answer: Employees become exempt from compulsory insurance only when regular annual earnings exceed the threshold: 77,400 euros in 2026, or 6,450 euros a month (GKV-Spitzenverband, last updated January 2026). Compulsory insurance ends at the close of that calendar year (§ 6 para. 4 SGB V). Cancelling voluntary GKV membership takes effect at the end of the second month after notice (§ 175 para. 4 SGB V).
The Most Important Points at a Glance
- Compulsory insurance does not end with your first pay check, but at the end of the calendar year in which the threshold is exceeded (§ 6 para. 4 SGB V).
- Exception: if your earnings do not exceed the threshold that applies from the following year, compulsory insurance continues.
- Once compulsory membership ends, you choose between staying in the GKV voluntarily and switching to private insurance.
- You must notify your voluntary GKV membership within three months (§ 9 para. 2 SGB V).
- Health insurance is compulsory. The new policy should therefore start without a gap (§ 193 para. 3 VVG).
When Do I Stop Being Compulsorily Insured?
As an employee you are compulsorily insured in the statutory scheme for as long as your regular annual earnings do not exceed the earnings threshold. The threshold is adjusted every year. For 2026 it is 77,400 euros per year. A draft ordinance sets 84,150 euros for 2027, which is not yet binding (Federal Ministry of Labour and Social Affairs, last updated October 2026). What counts is your regular pay. Your payroll department checks whether a special payment is included.
| Monthly salary | Annual value (times 12) | Above 77,400 euros (2026)? | Above 84,150 euros (2027, draft)? | Result |
|---|---|---|---|---|
| 6,000 euros | 72,000 euros | No | No | Compulsory insurance continues |
| 6,600 euros | 79,200 euros | Yes | No | Compulsory insurance continues (exception under § 6 para. 4 sentence 2 SGB V) |
| 7,100 euros | 85,200 euros | Yes | Yes | Compulsory insurance ends at the end of 2026 |
Assumption for the table: your salary stays the same all year and there are no special payments. The 2027 values are based on the draft ordinance and may still change.
When Exactly Does Compulsory Insurance End?
Compulsory insurance ends at the close of the calendar year in which the threshold is exceeded (§ 6 para. 4 sentence 1 SGB V). The key date is therefore not your first day of work, but 31 December of that year. For example: you start in March 2026 with a salary above 77,400 euros a year. If your earnings also exceed the threshold that applies from 1 January 2027, compulsory insurance ends on 31 December 2026. If they do not exceed that threshold, compulsory insurance continues (§ 6 para. 4 sentence 2 SGB V). A pay rise can therefore change the date, so check it with payroll.
How Does the Switch to Private Insurance Work?
- Ask payroll to confirm the date on which compulsory insurance ends and the annual earnings figure the calculation is based on.
- Decide before that date whether you stay voluntarily in the GKV or switch to private insurance.
- Submit your private application, including the health questions, in time so that cover starts directly after your compulsory membership ends.
- If you stay in the GKV voluntarily, notify your membership within three months. If you switch to private insurance, cancel the voluntary membership for the right date.
- Keep your sickness fund’s confirmation. It must confirm a cancellation within two weeks at the latest (§ 175 para. 4 SGB V).
Which Deadlines Apply in the GKV?
Deadlines decide whether your cover stays seamless. The most important ones are listed below.
| Event | Deadline | Legal basis |
|---|---|---|
| Joining voluntary GKV after compulsory membership ends | Notify within three months | § 9 para. 2 SGB V |
| Cancelling voluntary GKV membership | Takes effect at the end of the second calendar month after the notice | § 175 para. 4 SGB V |
| Confirmation of the cancellation by the fund | At the latest within two weeks | § 175 para. 4 SGB V |
| Binding period when changing fund | 12 months; does not apply if membership ends by law | § 175 para. 4 SGB V |
| Special right to cancel over an additional contribution | Cancel by the end of the month in which the additional contribution is raised | § 175 para. 4 SGB V |
The twelve-month binding period applies to changing funds. It does not apply if membership ends by law (§ 175 para. 4 SGB V). Ask your fund which case applies to you before you cancel.
What Are the Pros and Cons of Private Insurance at Career Start?
Both sides belong in the decision. Whether private insurance suits you depends on your health, your family plans and the tariff.
| Aspect | Points in favour of private insurance | Points in favour of the GKV |
|---|---|---|
| Contribution | The premium depends on tariff and age, not on salary | The contribution follows income, with a minimum contribution base |
| Benefits | Tariffs can offer extensive benefits | The scope of benefits is set by law |
| Family | Each person needs a separate contract | Children are usually covered through family insurance |
| Health check | The check can lead to surcharges in private insurance | Joining the GKV involves no health check |
A personal assessment cannot be replaced by an overview. For preparation, see our guide on preparing for a switch to private insurance (in German).
Frequently Asked Questions
Can I switch to private insurance before compulsory membership ends?
As a rule, no. While you are compulsorily insured you cannot freely choose private insurance. The freedom to choose only arises when compulsory membership ends.
Does the threshold also apply to part-time work?
The threshold refers to annual earnings. A part-time salary below the threshold keeps you compulsorily insured. What you actually earn over the year is what counts.
What happens if I cannot get a private policy?
Anyone who would otherwise have no health insurance can take out the basic tariff (Basistarif) of a private insurer without a health check (§ 193 VVG). Your statutory cover should continue until your new policy starts, so that no gap arises.
Do I lose the employer subsidy when I switch?
No. A private policy is what allows an employer subsidy to arise in the first place. The calculation is explained in our guide on the 2026 income limit for health insurance and in the guide on the employer subsidy for private insurance.
Do I have to cancel the GKV membership myself?
For voluntary GKV membership, yes. You send the cancellation to your sickness fund, which must confirm it within two weeks (§ 175 para. 4 SGB V).
What to Do Next
- Ask payroll for the date on which your compulsory insurance ends.
- Compare private offers with the voluntary GKV contribution, including tariff conditions and how contributions develop with age.
- Submit your application and plan the start of cover without a gap.
- Notify your voluntary GKV membership within three months, or cancel on time, depending on your decision.
Related Reading
- Health Insurance Income Limit 2026: What It Means
- Health Insurance Termination Right: Special Rules
- Health Insurance After Studies Without a Job: Options and Costs
- Employer Subsidy for Private Health Insurance: How It Is Calculated
- Self-Employed After Your Studies: Health Insurance and Pension
Sources: § 6 SGB V, compulsory insurance and earnings threshold (accessed October 2026), § 9 SGB V, voluntary membership (accessed October 2026), § 175 SGB V, choice of fund and cancellation (accessed October 2026), § 193 VVG, duty to hold health insurance (accessed October 2026), GKV-Spitzenverband, fact sheet on 2026 reference values (status 1 January 2026).
Last updated: October 2026. This guide is general information, not individual advice.
