Contribution to the Artists' Social Insurance Fund: Calculation and Amount

A number of questions arise in this context: On what basis does the KSK calculate the employee share? What happens if your income changes during the year? What specific contributions does the KSK require? We address these and other topics in this article.

As a first step, it is worth looking at the fundamental way the artists' social insurance scheme works. This is an institution that provides affordable social protection to, among others, freelance artists, writers, and journalists. The KSK achieves this by requiring insured persons to pay only the employee contributions. At the same time, the KSK acts as a kind of employer and transfers the employer's share to the German Pension Insurance (Deutsche Rentenversicherung) and the relevant health insurer. The KSK finances these costs through the artists' social levy (Künstlersozialabgabe), which clients must pay when remitting fees to self-employed artists, publicists, and similar professionals. The institution also receives federal subsidies.

This special form of insurance covers the following branches of social insurance:

• Pension insurance
• Health insurance
• Long-term care insurance

Unemployment insurance is not part of this system — that is the most important difference between KSK members and employees. In many other respects, however, there are similarities: as an insured person, you can, for example, freely choose your statutory health insurer. Under certain conditions, the KSK also permits insurance with a private health insurer.

KSK-insured persons are subject to the same contribution rates as employees who are compulsorily insured under the social insurance system. As of April 2023, these rates are as follows (general contribution rate / contribution for insured persons):

• Pension insurance: 18.6% / 9.3%
• Health insurance: 14.6% / 7.3% + individual supplementary contribution
• Long-term care insurance: 3.05% / 1.525% + 0.35% for those without children

Supplementary contributions levied by a health insurer are split equally between the insured person and the KSK. The surcharge for childless persons in long-term care insurance is borne by you as the policyholder alone. Do you live in Saxony? Please note that a higher contribution rate applies there for long-term care insurance! The rate for insured persons is 2.025% instead of 1.525%.

For employees, calculating social insurance contributions is straightforward: the basis is the gross pay actually received. Freelance KSK members, by contrast, have highly variable income, so a different procedure applies:

- As an insured person, you submit an estimate of your annual income. What matters is the profit you expect to generate from your self-employed activity.

- This estimate should be made on a well-founded basis. Refer to your previous year's tax assessment and make a realistic appraisal of how your profit situation is likely to develop in the coming year.

The KSK divides the projected annual profit by 12 months. Based on the monthly figure, it calculates your contributions to pension, health, and long-term care insurance.

As a rule, this has no consequences. The contribution calculation is based solely on your estimates; there is no precise settlement at the end of the year.

However, the KSK uses spot checks to verify whether the annual estimates submitted were realistic. The fund carries out these checks retrospectively; the time lag can amount to several years. If the discrepancies are modest, you need not fear any consequences. But if your actual income differs substantially from your estimate, additional demands may follow.

The KSK is aware that this procedure can lead to differences between forecast and actual income. There is no urgent need to act if minor under- or over-estimates emerge during the course of the year. However, if your income situation improves or deteriorates significantly, you should submit a revised estimate. From the following month onwards, the KSK will adjust your contributions — nothing changes retrospectively.

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