Company health insurance in Germany (bKV): What employers need to know
The betriebliche Krankenversicherung (bKV) is supplementary health insurance that employers in Germany take out and pay for their staff. It covers costs that statutory health insurance leaves to employees, and it is especially valued by international teams.
- The employer takes out a group contract and pays the premiums; employees are insured.
- Usually a health budget of €300 to €1,500 per person and year.
- Cost: about €14 to €50 per employee per month, tax-deductible for the company.
- Tax-free benefit in kind up to €50 per month (§ 8 (2) sentence 11 EStG).
- No health questions, no waiting periods, usually from 5 employees.
- Not a substitute for the health insurance required for a visa or residence permit.
What is a bKV?
A bKV is a group supplementary health insurance. The company is the policyholder and pays the premiums; employees are the insured persons. It adds to statutory (GKV) or private (PKV) health insurance and pays for things employees would otherwise pay out of pocket: glasses and contact lenses, dental cleaning and dental treatment, check-ups, vaccinations, alternative practitioners and co-payments for medication or physiotherapy.
Services included
- 24/7 video consultation with doctors
- Specialist appointment service
- Psychological coaching by phone
- Back pain and fitness programmes
- Parent coaching and care assistance, also for family members
- App: photograph the invoice, reimbursement within a few days
What does it cost?
| Annual budget | Premium/month | Net after tax* |
|---|---|---|
| €300 | €13.90 | €9.73 |
| €600 | €22.90 | €16.03 |
| €900 | €32.90 | €23.03 |
| €1,200 | €41.90 | €29.33 |
| €1,500 | €49.90 | €34.93 |
* Guide values for a corporation with approx. 30 % income tax. Binding premiums in the quote.
Tax and social security
If the employer is the policyholder and pays the premiums directly, the cover counts as a benefit in kind. Up to €50 per month (for all benefits in kind together) it is free of income tax and social security contributions. If the limit is exceeded, the whole amount becomes taxable; the employer can then apply flat-rate taxation. Reimbursements are tax-free for employees. Premiums are business expenses for the company.
bKV or pay rise?
For the same cost to the employer, a pay rise of about €275 per year leaves roughly €127 net for an employee earning €3,000 a month (tax class I). The bKV gives a €600 health budget plus services.
Why it matters for international employees
Many people moving to Germany are surprised by co-payments at the dentist, little support for glasses and long waits for specialist appointments. A bKV closes these gaps and helps new colleagues settle in. Please note: it does not replace the statutory or private health insurance required for a visa or residence permit.
Advice in English, German and Turkish
We are based near Dresden in Saxony and advise employers throughout Germany. Introduction sessions, documents and personal support are available in English. Our request form is in German, but you are welcome to write to us in English.
Frequently asked questions
What is bKV in Germany?
bKV (betriebliche Krankenversicherung) is company health insurance: supplementary health insurance that an employer takes out and pays for its employees, covering e.g. glasses, dental care, check-ups and co-payments.
Is company health insurance tax-free in Germany?
Yes, as a benefit in kind up to €50 per employee per month for all benefits in kind together, provided the employer is the policyholder and pays the premiums directly.
Does a bKV replace health insurance for a residence permit?
No. It is supplementary insurance. Statutory or private health insurance is still required.
Sources
- § 8 EStG, Sachbezugsfreigrenze von 50 € im Monat (Abs. 2 Satz 11)
- BFH, Urteil vom 7. Juni 2018, VI R 13/16: Krankenversicherungsschutz als Sachlohn
What would a bKV cost your company?
We calculate it with your own figures: net cost after tax, comparison with a pay rise and break-even. Free of charge, usually within two working days.