If you're self-employed and work almost exclusively for a single client, you may be required to pay into the statutory pension scheme – even if you've consciously chosen to be self-employed. This article explains what that means, what to watch out for, and why it’s important to discuss this with a tax advisor early on.
What Does “Primarily One Client” Mean?
The German Pension Insurance (Deutsche Rentenversicherung – DRV) considers you to be working “primarily for one client” if you consistently and regularly work almost exclusively for a single customer. Specifically, this applies when more than 5/6 of your income comes from that client. This situation is common for freelancers working long-term for one company.
When Are You Obligated to Pay into the Pension Scheme?
You are subject to mandatory pension contributions if you:
Work on a long-term and regular basis for only one client,
Do not employ staff subject to social insurance contributions, and
Are not exempt from the obligation (e.g., via a status determination or exemption request).
This applies to all self-employed individuals, regardless of legal structure – whether as freelancers, sole proprietors, or otherwise.
How Much Are the Pension Contributions?
If you're required to contribute, you must register yourself with the DRV. You are responsible for the full contribution – unlike employees, whose contributions are split with their employer. As of 2025, the standard contribution is approx. €600 per month. However, under certain conditions, a reduced rate is available in the first few years.
What Should You Do If You're Affected?
Check your client structure: If you're working mostly for one client, you should evaluate your pension insurance obligation.
Keep proper documentation: A detailed overview of your client base helps in assessing the situation.
Seek professional advice: Legal and tax advice is essential to understand your obligations.
Consider a status determination: In some cases, initiating a status determination procedure with the DRV can clarify your insurance status.
Observe deadlines: Late reporting may result in back payments and penalties.
Why This Topic Matters
Beyond the financial burden, failing to report your obligation can have legal consequences. In the worst case, the DRV may retroactively determine your obligation – including interest and fines. On the other hand, the statutory pension scheme also offers a degree of social security.
Our Tip
Not sure whether you’re affected or if an exemption is right for you? Talk to us. We’ll assess your individual situation, advise you on the best approach, and help with any required applications or documentation for the DRV.
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