Every employee in Germany pays directly into the German state/public pension. There is no exemption to that.

Whether that is a good deal for you or not will depend on your level of income (i.e. how high an amount is deducted from your gross salary and paid into the public pension). Because the higher your income is, the higher is your contribution – but it is not really likely that you’ll receive an adequate “ROI” for those higher amounts in the long run. The German public pension system is a social-welfare program where the high-earners subsidize the pensions of the low-earners. And due to demographic problems in Germany, there will be fewer people paying into the public pension in the future than today while still needing to support high numbers of retired folks. The full problem is explained in more detail here.

At least your employer is contributing half of the monthly contributions. And in some cases, if you have paid into the German public pension system for less than 60 months and move outside the EU, you may have a chance after two years to get your own pension contributions paid back to you. This option comes with a lot of caveats and loopholes, but it is worth contemplating. If you are interested, send us a quick inquiry through our contact form.