Payroll Procedure:
- A number of Irish companies have been registered in Germany for social insurance purposes only.
- All pilots based in Germany will be moved to one of these companies.
- A German payroll will be operated on a month basis for hours flown that month. So January’s Germany payroll will be based on January’s hours flown for social insurance purposes only.
- Social Insurance will be calculated on your gross income calculated deducting the ER deductions from your agency total, but is capped at certain levels (6500 Euro for West Germany and 5800 Euro for East Germany).
- Health insurance and Nursing care, for pilots insured with a statutory provider, will be calculated on your gross income calculated deducting the ER deductions from your agency total, but is capped at certain levels (4425 Euro).
- German allowable expenses will be deducted from your agency income retrospectively (a month in arrears).
- A German payslip will be issued showing the social insurance contributions on a monthly basis (the payslip will show only the EE deductions as you are considered an employee in Germany).
- An A1 and E106 social insurance certificate will be issued to you as soon as possible for your health provider in the country of your residency.