Reports indicate that numerous German employers are underpaying social security contributions to their employees, according to a report in the “Neue Osnabrücker Zeitung”. The newspaper cites findings from regular audits conducted by the German Pension Insurance (Deutsche Rentenversicherung).
The most recent review of employers across Germany in 2023 resulted in approximately €840 million in outstanding contributions being demanded. Conversely, the audits also uncovered around €86 million in instances of overpayment.
The Deutsche Rentenversicherung is legally mandated to conduct audits of every employer at least every four years. This practice is designed to prevent the expiration of claims related to incorrect payments. These audits examine whether sufficient contributions have been made to pension, health and long-term care insurance.
