The majority of professorships in Germany are still categorized as civil servant positions and are thus provided the privileges associated with the status of a German civil servant. The most important of these are lifetime appointment (permanent tenure), a guaranteed salary and pension (financial security), and the public employer’s legal responsibility for employee welfare (duty of care).
The responsibilities that come with civil servant status reflect a relationship of mutual service and loyalty between the individual and the state. Civil servants are expected to uphold the law without exception and are, for example, prohibited from going on strike. Anyone who has served a prison sentence in the past five years is not eligible for civil service. Previous convictions can also be an obstacle.
As a rule, civil servants are not required to be insured by the social security (public pension) system, nor with mandatory accident, unemployment, or health insurance systems. Instead of these legal social insurance schemes, civil servants are covered by an independent social security system that is specifically designed for civil service. Lifetime pensions are paid directly by the employer, and are one of the fundamental benefits of professional civil service. The employer is also required to pay occupational accident benefits. Civil servants do not need to pay into the unemployment insurance system because they are generally employed for life after completing their probationary period.
Health insurance for civil servants is comprised of two elements: 50% of medical costs incurred by active and retired civil servants are covered by their employer (The employer also covers 50% of dependent spouses’ and 80% of dependent children’s health care costs. Remaining costs must be covered by private health insurance, but the premiums for such coverage are significantly lower than regular health insurance premiums due to employer cost sharing. Healthcare benefits thus represent a significant financial benefit for state employees when compared to both state sponsored health insurance (which is fairly costly in Germany) and regular private insurance (which is generally only open to those earning at least €64,350 per year).
In case of short-term illness, civil servants continue to receive their salary until they return to work. In case of long-term illness, early retirement may be available. This benefit reflects the special nature of employment as a civil servant according to the principles of lifetime appointment and the employer’s duty of care.
Any activities undertaken for pay outside of one’s primary employment in the civil services is considered secondary employment. In Baden-Württemberg, there is a law that governs such secondary employment of academic staff at higher education institutions. As a general rule, civil servants are required to get approval prior to taking up any form of secondary employment. The human resources department can provide further information as well as the correct documents to file for approval. When you are hired, be sure to mention any specific plans for secondary employment – such as teaching, consulting activities, or research at other universities – during negotiations.
Civil servants are entitled to a pension upon retirement, and may retire
Pensions for civil servants (“Ruhestandsbezüge”) are taxpayer funded, as it would violate the state’s duty of care for civil servants to be dependent on social insurance systems. According to this duty, the government must ensure long-term pensions for civil servants that allow them to maintain their living standards in line with overall economic conditions. As a rule, pensions for civil servants are significantly higher than for non-state employees.
Retirement benefits for civil servants include a lifetime pension, survivors’ benefits, and accident insurance. To be entitled to a pension, a civil servant must have served for a minimum of five years or must have become disabled due to an accident at work.
The amount of pension benefits is based on the total compensation and length of service. The amount of pension is calculated as 1.79% of total compensation for every year of service up to a maximum of 71.75% for 40 years of service.