Arrangements as laid down in the German Social Code
Individuals who are employed in Germany must be registered in Germany for social insurance. In this connection, the nationality, the place of residence, the legal form, or the employer’s place of business are irrelevant. Neither is it relevant whether the employee is already registered in another country’s social insurance system and paying contributions to it.
One exception applies when an effect termed "Einstrahlung" occurs, which would be the case if an employee who is posted to Germany is in a direct employment relationship abroad; the posting must however be temporary, that is, limited in time either by its nature or by prior contractual arrangement. (Volume IV, Section 5, German Social Code (SGB IV)).
German legislation concerning the obligation to pay social security insurance contributions does not apply when “Einstrahlung” takes place; the employee concerned need not be registered for statutory health, care, pension, unemployment, or accident insurance.
The deduction bodies (the health insurance schemes) determine whether there is an insurance obligation; the decision whether an accident insurance is required will be taken by the respective accident insurance institution.
Where an employee who is in a direct employment relationship in Germany is posted abroad, the legislation governing German social insurance obligations continues to apply. The term used to describe this effect is "Ausstrahlung". Again, such posting must be temporary, that is, limited in time either by the nature of the assignment or by prior contractual arrangement (Volume IV, Section 4, German Social Code (SGB IV).
Supranational and intergovernmental arrangements (EU, EEA, bilateral agreements) shall have priority:
Harmonised rules within the EU
Arrangements within the EEA
Arrangements between the EU and Switzerland
Bilateral agreements (in German)
