Freelancers: Health insurance for part-time self-employment – What rules apply?

Taking the step into self-employment is a challenge for many highly qualified expats and For skilled workers in Germany, it's an attractive path to realize their own visions or explore the market alongside employment . However, while entrepreneurial freedom is appealing, the German social security system harbors pitfalls, particularly regarding health insurance, which can have far-reaching financial consequences. Those who make the wrong choices risk not only back payments but, in the worst-case scenario, complications with the [unclear - possibly "health insurance" or "social security"]. Immigration office , since complete and correct health insurance coverage is a central requirement for any This constitutes a residence permit in accordance with the German Residence Act (AufenthG) . As a law firm, we support clients daily in navigating this complex web of labor law and social security law in a legally sound manner.

The distinction between main and secondary occupation

The crucial question for everyone The question for employers and every employee registering a secondary business is: Where does the main focus of their life lie? The German Social Code (SGB) does not stipulate rigid limits here, but rather operates on a so-called overall assessment. The health insurance fund examines, based on a presumption rule, whether the self-employment exceeds the dependent employment in terms of both economic and temporal resources. A rule of thumb is often a limit of 20 hours per week (see “ Basic Information on the Concept of Primary Self-Employment ”). If this limit is exceeded, self-employment is usually classified as primary. This means that compulsory insurance as an employee ends, and one must then take out voluntary statutory or private health insurance . Income also plays a role: If the profit from self-employment significantly exceeds the salary from employment, the status changes.

Special features for students and young professionals

International students who build a business alongside their studies enjoy specific privileges, but also face strict limitations. As long as their studies remain their primary focus – generally assumed to be a maximum of 20 working hours per week during term time – they retain their student health insurance status. However, those insured through family coverage (usually possible until age 25) must carefully monitor the income limits. In 2025, the monthly income limit for family members covered under their insurance is €565 (or €505 plus a standard deduction for work-related expenses). If this amount is regularly exceeded due to part-time self-employment, the entitlement to free co-insurance expires (see Section 10 Paragraph 1 Sentence 1 No. 5 of the German Social Code, Book V ). In such cases, switching to their own insurance is essential to meet the requirements of the [relevant regulations/standards]. to comply with passport requirements and the associated residence permit. A violation of the insurance obligation can indirectly jeopardize the validity of the visa, as proof of sufficient means of subsistence, including health insurance coverage, must be provided in accordance with Section 5 of the Residence Act.

Unemployment and the path to self-employment

Even during periods of career reorientation, such as while receiving unemployment benefits (ALG I or II), part-time self-employment is possible. However, extreme caution is advised: The time commitment must remain strictly below 15 hours per week . As soon as this limit is reached or exceeded, one is no longer considered unemployed under social security law, and the assumption of health insurance contributions by the employment agency or job center ceases (see Section 138 of the German Social Code, Book III ). We strongly recommend notifying the relevant authority and health insurance provider of any commencement of self-employment in advance to avoid retroactive classification as a full-time self-employed individual and the associated retroactive contribution demands.

Choosing the right insurance system

When income increases, the question often arises: statutory (GKV) or private health insurance (PKV)? As long as primary employment remains below the annual income threshold (2025: €6,150 per month), one generally remains compulsorily insured under the statutory health insurance scheme. In this case, income from secondary self-employment usually does not incur additional health insurance contributions – a significant financial advantage . Only when self-employment becomes the primary occupation or the employee salary exceeds the compulsory insurance threshold does the option of private health insurance open. For many expats and highly qualified professionals, this is a significant advantage . Private health insurance often offers skilled workers more comprehensive plans and shorter waiting times for specialist appointments. However, this decision should be carefully considered, as returning to the statutory health insurance system becomes significantly more restricted with age. For submission to the Furthermore, it is crucial for the immigration authorities that the private insurance meets the legal requirements (similar to the level of statutory health insurance) and can certify this to the authorities.

Conclusion and recommendations

Part-time self-employment offers tremendous opportunities but requires precise legal classification. As a law firm, we advise you to proactively report any changes in working hours or income to your health insurance provider. This is the only way to minimize the risk of a retroactive change in your status. Always ensure that your insurance coverage meets the requirements of your residence permit – check that the information in your [document/document] matches the information in your [document/document]. Your passport and insurance documents are essential for the authorities. Human resources departments are also advised to keep an eye on their employees' secondary employment to ensure the correct payment of social security contributions and to avoid liability risks. Avoid companies . With proper planning, self-employment remains a driving force for your success, rather than becoming a legal burden.

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You might also be interested in:

• Guide: Securing a livelihood with a residence permit

• Guide: Health insurance coverage for foreigners

• Guide: Freelancer Visa