Mandatory health insurance for executive board members with low salaries?
January 7, 2013 | 35,00 EUR | answered by StB Steffen Becker
The question concerns health insurance obligation:
Situation:
- I am the CEO of a public limited company. As such, I am exempt from social insurance.
- The company is owned 98% by other family members and 2% by me.
- I have private health insurance. I would like to keep it that way.
- I would like to reduce my salary, ideally below the contribution assessment ceiling. I do not need the money to live, as I have high income from shares in foreign companies. These earnings are not taxed in Germany, but only increase the tax rate of the German tax base (add-back).
Complication:
- It is clear to me that as a CEO of a public limited company, I do not pay pension or unemployment insurance. I am not sure about health insurance.
- Will I be legally obliged to have health insurance if I reduce my salary to, for example, EUR 2,000 per month?
Dear inquirer,
Thank you for your inquiry. I will answer this as part of an initial consultation based on the information you have provided. Missing or incorrect information can affect the legal outcome.
As a board member of a public company (AG), you are essentially considered an employee of the company. However, there are special regulations in place in the various social insurance branches:
In health insurance, board members of a public company are subject to mandatory health insurance as employees. If there is voluntary insurance with a statutory health insurance fund, the company must make a contribution towards the premium (§ 257 SGB V).
In long-term care insurance, the principle is that long-term care insurance follows health insurance. If there is a mandatory or voluntary membership with a statutory health insurance fund, long-term care insurance becomes mandatory (§ 20 para. 1 or para. 3 SGB XI); otherwise, there is no mandatory long-term care insurance. Under the aforementioned conditions, the company must also provide a contribution towards long-term care insurance (§ 61 SGB XI).
I hope I have been able to provide you with a brief overview of the situation. However, in order to make a comprehensive and more specific statement, detailed information about your personal circumstances will definitely be required.
Sincerely,
Steffen Becker
-Tax Advisor-
stb-becker@arcor.de
