Germany lowers artists' social security contribution rate
At the beginning of next year, the rate of the artists' social security contribution in Germany is to be reduced from 5.2% to 4.8%. This would reduce the burden on artists and companies liable to pay contributions.
Many musicians are among the freelance artists. According to the German Orchestra Association (DOV), increasing digitalization alone has meant that parts of their income from the management of ancillary copyrights have so far been lost without replacement. Under these circumstances, their social security is more important than ever. This also applies with regard to avoiding poverty in old age.
More than 180,000 freelance artists are compulsorily insured under the German artists' social insurance scheme (which has no direct equivalent in Switzerland), including more than 51,000 in the music sector. This means that, despite being self-employed, they enjoy the protection of statutory health, long-term care and pension insurance.
Like other compulsorily insured employees, insured persons pay half of their contributions. The other half is paid by the federal government (20 percent) and companies that award contracts to freelance artists and publicists (30 percent). The artists' social security contribution is levied as a levy. The levy rate is set annually for the following calendar year. The assessment basis is the fees paid in the previous year.
