A compulsory contribution time is the time, for which the employees contributions pay to the old age pension insurances.
In the law it is as follows regulated (excerpt from "§ 55 S (1) the SGB VI):
(1) Contribution periods are times, for which after Federal Law compulsory contributions (compulsory contribution times) or freiwillige contributions were paid. Compulsory contribution times are also times, to which compulsory contributions apply according to special regulations as paid. When contribution periods apply also for times, for which points of payment were credited, because consideration times are present at the same time because of child education or times of the care of a child in need of care for several children.
A contribution is calculated with that for current rate of contribution. The employee and the employer carry these ever to half.
An employee earns 1500" in the month. In the year 2004 the rate of contribution 19.5% (9.75% for ON & AG) amounts to. Thus the contribution is calculated as follows:
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