Warm greetings from a first-timer on this forum!
Having been through this discussion a hundred times already as a member of ELTAF, i couldn't help thinking i should post something of the outcome of our efforts/struggles to find solutions. We finally settled things (barely) by getting expert advice from a god-send of an organization called Trainerversorgung e.V. They not only explained for us the archaic law that keeps teachers, child care providers and nearly all "trainers" (including fitness trainers) in the DRV net, but they provide on-going advice for a very reasonable annual membership fee. See their website for more info on the laws, or contact them.
The main point i wanted to mention here, however, is one made recently by one of our members after he got fed up with the "talk" on our own e-list amongst the dozens of other members looking for ways to dodge DRV payments/contributions either by employing a spouse or trying to identify themselves as a "language consultant". Poignantly, he argued that the DRV is not evil. This guy is nearing retirement and would have a serious problem if he hadn't paid into the pension fund all those years. The contributions you make, he reminded us, DO come back when you retire. all alone, they are by no means sufficient, and you'll most likely need supplemental retirement funds. as the German pension plan is one of the best in the world, we have little to cry about. (by the way, if you leave the country, you get the contributed money back within a couple of years)
Fact is, IF you CAN escape DRV payments, you are very UNWISE if you don't find another form of investment to park that 20% of your income. All financial advisors worth their salt recommend squirreling away at LEAST 10% of your income (this is almost always tax deductible). Instead of trying to find ways to escape DRV payments, we should be passing on these costs to the "employers" who offer only freelance contracts because they don't want to pay the rest of our "social insurances". it all comes down to hourly pay rates and sticking to your own minimum-rate formula that includes all these pieces. With luck, someday you will find yourself employed (i.e. permanent, salaried position) and pay max. 50% of the DRV payments, for which i would happily accept a lower hourly rate, within limits.
for more info on pay rates, you could check out our member pay survey on the ELTAF website. (www.eltaf.de)
One more thing: for those shaking with fear of being forced to make back payments, the DRV will work with you, i'm told. They aren't out to run you out of the country. Many of our members have been surprised by how flexible they are.
best wishes,
Christine (ELTAF committee member)
Having been through this discussion a hundred times already as a member of ELTAF, i couldn't help thinking i should post something of the outcome of our efforts/struggles to find solutions. We finally settled things (barely) by getting expert advice from a god-send of an organization called Trainerversorgung e.V. They not only explained for us the archaic law that keeps teachers, child care providers and nearly all "trainers" (including fitness trainers) in the DRV net, but they provide on-going advice for a very reasonable annual membership fee. See their website for more info on the laws, or contact them.
The main point i wanted to mention here, however, is one made recently by one of our members after he got fed up with the "talk" on our own e-list amongst the dozens of other members looking for ways to dodge DRV payments/contributions either by employing a spouse or trying to identify themselves as a "language consultant". Poignantly, he argued that the DRV is not evil. This guy is nearing retirement and would have a serious problem if he hadn't paid into the pension fund all those years. The contributions you make, he reminded us, DO come back when you retire. all alone, they are by no means sufficient, and you'll most likely need supplemental retirement funds. as the German pension plan is one of the best in the world, we have little to cry about. (by the way, if you leave the country, you get the contributed money back within a couple of years)
Fact is, IF you CAN escape DRV payments, you are very UNWISE if you don't find another form of investment to park that 20% of your income. All financial advisors worth their salt recommend squirreling away at LEAST 10% of your income (this is almost always tax deductible). Instead of trying to find ways to escape DRV payments, we should be passing on these costs to the "employers" who offer only freelance contracts because they don't want to pay the rest of our "social insurances". it all comes down to hourly pay rates and sticking to your own minimum-rate formula that includes all these pieces. With luck, someday you will find yourself employed (i.e. permanent, salaried position) and pay max. 50% of the DRV payments, for which i would happily accept a lower hourly rate, within limits.
for more info on pay rates, you could check out our member pay survey on the ELTAF website. (www.eltaf.de)
One more thing: for those shaking with fear of being forced to make back payments, the DRV will work with you, i'm told. They aren't out to run you out of the country. Many of our members have been surprised by how flexible they are.
best wishes,
Christine (ELTAF committee member)
