What is the KSK and what is its aim? What advantages are there for artists?

The Artists “Social Insurance Fund (KSK) is a special German social insurance institution that provides self-employed artists and publicists with access to statutory health, long-term care and pension insurance. The legal basis is the Artists” Social Insurance Act (KSVG), which was passed in 1981 and came into force on January 1, 1983. This was the legislator’s response to the previously often inadequate protection of creative freelancers with irregular incomes. The aim of the KSK is to provide freelance creative professionals – such as graphic designers, musicians, journalists, but also modern digital creators such as game developers, streamers or similar content creators – with the same social security as if they were employees.

To this end, the KSK acts as a link between the insured persons and the actual insurance providers. It registers the artists and publicists subject to compulsory insurance with a statutory health insurance fund of their choice as well as with the pension and long-term care insurance funds and forwards the contributions to them. Freelance artists and publicists thus receive the full benefit protection of the statutory social insurance schemes, but only have to pay around half of the contributions themselves. The remaining 50% is covered by the Künstlersozialkasse, financed by a federal subsidy (20%) and a special levy on companies (30%). This unique mixed financing model ensures that the contribution burden for creative artists corresponds to that of an employee. The KSK is seen as “not only a social but also a cultural policy achievement”, as it recognizes the creative work of artists and publicists as socially important.

Today, over 190,000 self-employed artists and publicists are insured through the KSK (as of the beginning of 2024). Organizationally, it has been part of Deutsche Rentenversicherung Knappschaft-Bahn-See since 1 January 2025, but remains financially independent. For founders and start-ups in the creative sector – whether in the traditional art and media sector or in the digital IT and games industry – the KSK means that they can arrange their social security at considerably more favorable conditions. The following explains how the KSK works, who must/can be a member, what contributions and obligations apply and what advantages the system offers. Typical pitfalls are also addressed and practical tips are given on how to integrate the KSK correctly at an early stage despite a certain amount of bureaucracy.

How the KSK works: Obligation to pay contributions, compulsory insurance and artists’ social security contributions

Compulsory insurance and compulsory contributions for creative professionals

Basic principle: Self-employed artists and publicists are compulsorily insured by law for pension, health and long-term care insurance, provided they meet certain criteria. According to § 1 KSVG, compulsory insurance applies “if they carry out their artistic or journalistic activities on a commercial and not merely temporary basis and do not employ more than one employee in connection with this”. For-profit means that the activity is carried out on a sustained basis with the intention of making a profit (not just a hobby), and not just temporarily implies a permanent professional activity. In addition, the artist may employ a maximum of one employee – more than one employee subject to social security contributions leads to exclusion from the KSK, unless they are trainees or marginally employed (mini-job up to currently € 520 per month). In short: The KSK covers full-time self-employed individual artists/publicists, but not larger companies.

If a self-employed person meets these requirements, they must insure themselves with the KSK – there is no provision for a voluntary decision. Compulsory insurance includes statutory pension insurance and – provided there is no exemption – health and long-term care insurance. In return, there is an obligation to pay contributions: the insured person must pay contributions on their income to the KSK, which forwards these to the respective insurance companies. The basis for assessment is the annual income from artistic/publishing activities. The monthly contribution therefore depends on the amount of the self-employed annual profit. As with employees, the general contribution assessment limits for social insurance apply; very high incomes are only subject to contributions up to these limits. In order not to overburden the lowest earners, the KSVG also has a low income limit: if the expected annual income is less than €3,900 (€325 per month), there is generally no obligation to pay contributions. In this case, the person concerned must secure their health and pension insurance elsewhere (privately or through another job). However, there is one important exception: young professionals are also subject to compulsory insurance if their income is below the income limit. In the first three years after taking up artistic self-employment, KSK protection applies regardless of income.) This special rule is intended to make it easier for young founders to get started – however, if their income is very low, at least minimum contributions are due, which are adjusted annually. After the initial period, the standard income limit applies; if income remains permanently below € 3,900 per year, the insurance obligation ends.

In practice, the KSK registers an artist subject to compulsory insurance with the social insurance funds and calculates their individual contribution share. The insured person pays their share to the KSK each month (roughly equivalent to 50% of the total contributions), the KSK adds the remainder financed by the federal subsidy and levy and pays 100% of the contribution to the health insurance fund, pension fund and long-term care fund. Insured persons then receive benefits such as sickness benefit or rehabilitation measures from the respective health insurance fund or pension insurance provider as if they were employees. Important: Unlike with health insurance, exemptions from compulsory pension insurance cannot be applied for – even if you have already made private provisions. Self-employed creative professionals can therefore not legally decide to forgo the statutory pension – the KSVG obliges them to make provisions and is therefore intended to close gaps in social protection.

Artists’ social security contributions by users (companies)

The second half of the contribution is financed by the artists “social security contribution (KSA). All companies, associations or self-employed persons who exploit the works or services of self-employed artists or publicists, i.e. use them for business purposes, are liable to pay the levy. The KSVG lists typical sectors (e.g. publishing houses, theaters, concert organizers, galleries, advertising agencies, etc.), but a general clause also applies: ‘all companies that use the works or services of self-employed artists or publicists for the purposes of their own business and wish to generate income in connection with this’ are subject to the levy.) In practical terms, this means that every company that commissions a freelance artist – whether for the production of artistic content, for participation in a project or for its own advertising purposes (self-promotion) – must also pay a percentage of the fee paid to the KSK as an artists” social security contribution. The legal form of the commissioned artist is decisive here: the levy is only payable if the contractor is a natural person. If, for example, an agency or corporation is commissioned with the creative work instead, the levy does not apply (because the artist is then not self-employed in the sense of social security law). Companies cannot pass on this tax obligation to the artist – it must be paid by the client in the same way as an employer’s tax.

The basis for calculating the artists “social security contribution is all remuneration paid by a company liable to pay the contribution to self-employed artists/publicists within a calendar year. This includes fees, license payments, piece payments, etc., including ancillary costs and expenses. At the end of the year, the entrepreneur reports the total of these fees to the KSK and then receives a tax assessment notice. Only minor orders are exempt from the levy: If the total of all fees in the year does not exceed the statutory limit (up to 2024: €450, 2025: €700, from 2026: €1,000), there is no obligation to pay the levy. However, if this allowance is exceeded, the levy is due for all fees for the year (not just for the excess amount). The client liable to pay the levy must register with the KSK and report the total fees for the previous year by March 31 each year. Example: If a start-up commissions a freelance graphic designer to create a logo design for €1,000, it currently has to pay an additional 5% (= €50) artists” social security contribution to the KSK. This levy is fed into the KSK budget together with the contributions of the insured persons and the federal subsidy in order to cover KSK expenses.

The percentage rate of the levy – the artists’ social security contribution rate – is set each year by the Federal Ministry of Labor and Social Affairs by decree for the following year. It has been in the single-digit percentage range for several years. Currently (2025), the levy rate is 5.0% of the fee. In previous years, it was lower at times (2018-2022 it was 4.2%) and was raised to 5.0% from 2023. The amount is reviewed regularly and fluctuates depending on the KSK’s expenditure and income situation. For companies liable to pay the levy, this means an additional non-wage labor cost component when hiring external creative professionals. Monitoring: The proper payment of the artists’ social security contribution has been monitored by the German Pension Insurance since 2007. As part of the regular company audits in accordance with Section 28p SGB IV, the pension insurance institutions check whether companies have fulfilled their obligation to report to and pay the KSK. Failure to do so can result in back payments for up to five years plus late payment penalties. Companies should therefore firmly integrate the artists’ social security contribution into their budget planning and accounting in order to avoid unpleasant surprises.

Membership of the KSK: Who must, who can, who may? – Requirements and entitlement

Who is insured through the KSK? In principle, any self-employed artist or publicist who meets the above criteria must register with the KSK. The law defines artists as persons who create, perform or teach music, performing arts or visual arts; publicists are writers, journalists or persons who are similarly active in publishing (including teachers of journalism),§ 2 KSVG. This broad definition includes traditional professions (e.g. painters, graphic artists, photographers, actors, musicians, writers) as well as new forms of activity. The decisive factor is always that it is a creative activity. For example, game designers or 3D artists in the field of computer games can be considered visual artists (design), or YouTubers/streamers can be considered journalists if their content is editorial or artistic in nature. The KSK checks the classification of an activity on a case-by-case basis. If you are not sure whether your activity falls under art/publishing, you should still submit an application – the criteria will then be clarified in the assessment procedure. In general, however, only self-employed artists and publicists are entitled to be included in the KSK. A self-employed IT consultant or trader, for example, cannot voluntarily insure themselves via the KSK; this privilege does not exist for self-employed persons from other sectors.

Requirements in detail: The person must carry out the artistic/publishing activity as their main occupation, i.e. they must predominantly derive time and income from it. In the case of mixed professions (see below), it depends on which area is economically predominant. The income from the creative activity should also be over €3,900 per year – if it is less, you are exempt from insurance after the initial phase. However, as mentioned above, newcomers to the profession are accepted despite lower income, namely for the first three years of employment. During this time, you can build up a professional existence without losing KSK protection. Furthermore, the self-employed person may have a maximum of one employee (excluding marginally employed persons or trainees). If you have more employees, you are no longer considered an individual artist worthy of protection, but an entrepreneur in the normal sense and are no longer covered by the KSK. Finally, there must be no other compulsory insurance – for example, anyone who is already covered by statutory health/pension insurance as an employee or is exempt from insurance as a civil servant/candidate civil servant does not need the KSK (see exceptions below). In short: anyone who is self-employed (as their main occupation) in an artistic/publishing capacity and does not have a competing employment relationship must become a member of the KSK.

Registration and proof: Membership is not automatic, but the artist/publicist must submit an application for membership to the KSK. For this purpose, the KSK provides a detailed questionnaire in which the details of the activity and the income situation must be stated. In addition, supporting documents must be submitted (e.g. samples of work, invoices, contracts, references), which the KSK can use to check the artist or publicist status. The authority makes extensive use of this: “The KSK checks the artist or publicist status on the basis of a questionnaire and evidence to be submitted.”. Applicants should therefore prepare meaningful documentation of their previous work and qualifications. Tip: It can be helpful to explain to the KSK which recognized field (music, performing or visual arts, design, literature, journalism, etc.) your work belongs to. If the decision is positive, the KSK will register the new insured person with the desired funds and inform them about the start of insurance and the contributions to be paid. From then on, you are officially a KSK member and enjoy full protection (possibly including family insurance in health/nursing care insurance, if the requirements for this are met.

Who is not subject to compulsory insurance? Despite fulfilling the basic requirements, certain circumstances may result in an exception. § Section 4 KSVG lists various cases in which there is no obligation to take out insurance via the KSK. An overview of the most important reasons for exclusion:

• Parallel employment: Anyone who is in employment subject to compulsory insurance in addition to their self-employed artistic activity (or is exempt from compulsory insurance due to a status such as civil servant) is not insured via the KSK. Example: A graphic designer with a 50% salaried job is already covered by social insurance through her employer and is not included in the KSK for her part-time self-employment.
• Other main activity: If the self-employed person carries out another self-employed activity in addition to art, which is predominant in terms of type or scope, the KSK does not apply. In particular, anyone who pursues a non-artistic activity as their “main economic activity” (e.g. also works as a lawyer, doctor, restaurateur or similar) is not covered by the KSK. Only if the other activity remains marginal (within the meaning of § 8 SGB IV) can the KSK continue to apply.
• Special pension schemes: Certain occupational groups have their own compulsory insurance schemes. For example, anyone who is already compulsorily insured in the statutory pension insurance scheme as a craftsman or who belongs to the agricultural fund as a farmer is exempt from KSK pension insurance. Similarly, recipients of a full old-age pension (standard old-age pension) are no longer subject to pension insurance once they reach retirement age.
• Starting after retirement age: If you only take up artistic self-employment when you reach retirement age, you are no longer insured with the KSK.
• 55+ rule in health insurance: Artists over the age of 55 who have not had statutory health insurance in the last 5 years can no longer switch to statutory health insurance via the KSK (this corresponds to the general rule of § 6 Para. 3a SGB V). In such cases, the only option is private health insurance.
• Part-time students: There is no special KSK insurance for regular students. However, anyone who works as a self-employed artist on a sustained basis alongside their studies and exceeds the income limit may still be subject to compulsory insurance. Conversely, students who only carry out their artistic activities as a genuine sideline (i.e. to a clearly subordinate extent) often remain below the marginal earnings threshold – in which case the KSK does not apply. In such cases, there is usually student insurance via the health insurance fund, and individual provision must be made for the pension.

Note: The exceptions mentioned are regulated in detail in § 4 and § 5 KSVG. They are intended to avoid double insurance. In cases of doubt as to whether an exception applies, you should contact the KSK or seek expert advice instead of refraining from taking out insurance on your own authority. It is also important to note that if the reasons for exclusion no longer apply (e.g. end of parallel employment), the person concerned can/may be re-admitted to the KSK. Overall, however, the following applies: Anyone who meets the requirements has a legal right to be admitted to the KSK – it is not a discretionary benefit. The KSK may not reject any qualified applicant, and conversely, no one who does not meet the requirements may be accepted.

Current status of the artists’ social security contribution (2025)

The artists’ social security contribution is subject to ongoing adjustments. For 2025, the levy rate is 5.0% of remuneration – the same value as in the two previous years. By way of comparison, the rate was stable at just 4.2% in the years 2018 to 2022, but was then raised to 5.0% in 2023. This was due to rising KSK expenses (e.g. due to benefit adjustments and declines in income during the coronavirus pandemic), which made an increase necessary. The rate remained at 5.0% in 2024, and this rate still applies today. The Federal Ministry of Labor and Social Affairs announces the rate for the following year by decree by 30 September. For companies, this means that they may have to adjust to changing contribution rates – however, a moderate percentage in the low single-digit range is the long-term political goal.

Taxable threshold amounts: The annual fee allowance for the tax liability was also recently dynamized. This has remained unchanged at € 450 per year for many years, but is now being gradually increased: For 2025, the threshold will be €700 and then €1,000 per calendar year from 2026. Small orders up to this amount will remain tax-free. This is intended to reduce bureaucracy for very sporadic and minor transactions (such as a one-off mini order). At the same time, the group of taxable persons has been expanded through increased checks in order to reduce “free riders” without paying tax.

Other current figures: The KSK itself regularly publishes statistics. At the beginning of 2024, almost 191,100 artists and publicists were insured with the KSK. The number of companies liable to pay contributions in 2022 was around 180,000, with reported fee payments totaling around €6.25 billion. The federal subsidy to the KSK amounted to around 23% of expenditure in 2022 (approx. €174 million) – this share is around 20% by law. These figures show that the KSK is an established and financially significant system. The current contribution rate of 5.0% ensures that funding remains stable despite rising benefit utilization. The increase in the exemption limit is expected to result in a slight reduction in the number of taxpayers in 2025, which could make it necessary to adjust the percentage rate again in the event of future funding requirements. Founders should therefore keep an eye on developments (levy rate, threshold amounts) and follow the BMAS’s annual announcements on the artists’ social security levy, for example.

Advantages of KSK membership for young artists and founders

Joining the KSK brings considerable advantages for self-employed creative professionals – both financially and in terms of social protection. Here is an overview of the most important benefits:

• Halving of social security contributions: Probably the biggest advantage is the cost saving. Thanks to the KSK, the self-employed only pay around half of the contributions otherwise due for health, long-term care and pension insurance.) Their contribution burden thus corresponds to that of an employee; the KSK pays the other half (through a levy and subsidy). Without KSK, creative professionals would have to pay the full contribution on their own or take out expensive private insurance. A numerical example: With an annual income of €20,000, health and long-term care insurance would cost around €250 per month – the self-employed person only pays €125 of this via the KSK, the rest is financed by the levy. The same applies to pension insurance (around €155 instead of €310 per month for an income of €20,000). This provides young founders with enormous financial relief and enables them to make provisions from the outset without disproportionate costs.
• Health and long-term care insurance: statutory cover on favorable terms: KSK insured persons enjoy the full benefits of statutory health insurance, including options for sick pay, rehabilitation measures etc., but only pay the employee contribution. The option of family insurance is also important: if the self-employed artist has children or a non-working spouse, for example, they can often be co-insured in the statutory health/nursing care insurance free of charge – an advantage that private insurance does not offer. In addition, there is no risk assessment in statutory health insurance: even with pre-existing conditions or at an advanced age, KSK members can join the health insurance fund on the same terms as any other insured person. Contributions are based on income and do not depend on health status or age. This saves you the drastic premium increases that are common in private health insurance as you get older. For founders in sectors such as design, gaming or streaming – who often start out as young self-employed people – this means predictable and solidly calculated healthcare costs.
• Pension and disability insurance: The KSK makes creative professionals compulsory members of the statutory pension insurance scheme. On the one hand, this has the advantage that – unlike many other self-employed people – they are covered for old age at all, and on the other hand, they only pay half the contributions. Each year of artistic activity subject to compulsory insurance increases the later pension entitlement. Reduced earning capacity (disability) benefits are a particularly important aspect: if artists do not pay into the statutory pension fund, they would not be entitled to a reduced earning capacity pension in the event of a serious illness or disability and would have to live on savings or basic income support. However, they acquire such entitlements through the KSK. Basic protection against incapacity to work is provided after just five years of contributions. In addition, statutory pension insurance provides access to benefits for medical rehabilitation or vocational retraining, from which self-employed artists can also benefit. To a certain extent, the KSK enforces retirement provision – which many creative professionals would neglect for financial reasons – and thus protects against poverty in old age or defencelessness in the event of illness.
• Planning security and simple processing: KSK members can rely on the fact that their social security contributions are based on a percentage of their income. In bad economic times, your own contributions are automatically reduced, in good times you pay more – similar to employees with a variable salary. This provides financial flexibility. Contributions are processed centrally via the KSK so that you do not have to settle accounts separately with different funds. Founders in particular, who are already confronted with a variety of tasks, benefit from this bundling. The KSK also offers a telephone advice service and information material, which further reduces the administrative burden. The KSK is currently even providing online forms and webinars to enable applications and notifications to be completed conveniently. Overall, this makes social security more “start-up-friendly”: you can concentrate on building up your creative business, while the KSK ensures that health and pension insurance run smoothly in the background.
• Legal advantages and support from the state: Inclusion in the KSK is ultimately an expression of the political appreciation of creative professions. The state specifically supports artists and publicists through this system “because this occupational group is usually much less socially secure than other self-employed people” – it is a recognition of the special living and working situation of creative professionals. This privilege (which other self-employed people do not have) gives young talents the opportunity to pursue an artistic career without losing all social safety nets. Creative professionals with KSK membership are also often better protected than those in the private sector: A freelance designer, for example, has similar insurance cover through the KSK as a salaried designer – including maternity benefits, rehabilitation entitlements, etc. – whereas without KSK she would only have voluntary or private insurance. This equality with employees creates fairer conditions in competition. Many founders also find it psychologically relieving to be covered by the KSK: risks such as medical costs or pension provision are mitigated, which opens up entrepreneurial freedom.

In summary, the KSK provides young artists and creative start-ups with considerable financial relief and a safety net that they would often lack without the KSK. They pay lower contributions for comprehensive insurance cover and can therefore devote themselves to their creative work in a more experimental and long-term manner. These advantages not only benefit individuals, but also strengthen the entire cultural and creative industries, as more talented people can work sustainably.

Typical pitfalls and problems

Despite the advantages mentioned, there are some pitfalls that founders and self-employed people in the creative sector should be aware of. Ignorance or neglect of social security obligations can have considerable consequences – both financially and legally. Typical problem areas are outlined below:

• Incomplete or missing insurance cover: A dangerous mistake is not taking your own cover seriously. Although health insurance has been compulsory for everyone in Germany since 2009, some creative professionals initially try to get by without adequate protection (e.g. by not registering with the KSK or remaining in a student insurance scheme beyond the permissible level). The consequences can be serious: Anyone without health insurance risks overwhelming treatment costs in an emergency and having to pay all premiums in arrears from the time of discovery. Even those who rely on private minimum insurance often experience problems – e.g. benefit exclusions or drastically increasing premiums with age. The situation is similar with pension insurance: young self-employed people tend to postpone retirement provision in order to save liquidity. But the years without contribution payments are missed later. Although the KSK forces you to make provisions, anyone who mistakenly believes they can do without it is gambling with their own future. A lack of pension provision leads to minimal pension entitlements or no pension entitlement at all in old age. This often leaves only the basic state pension at Hartz IV level, which would mean a considerable reduction in the standard of living. Similarly, without contributions, there is no entitlement to a reduced earning capacity pension – a high risk if, for example, it is no longer possible to work after the age of 50 due to illness.
• Failure to register with the KSK: Some founders do not realize that they are actually subject to compulsory insurance and do not register with the KSK. This can harm both the artist themselves and their clients. If an artist who is actually subject to KSK remains undiscovered, they initially save on contributions – but have no or only very limited protection in the event of a claim (illness, old age). They also accumulate debts: As soon as the KSK learns of the activity (e.g. through a tax audit of the client or a tip-off), it can demand contributions retroactively. Although there are limitation periods, back payments for several years at once can threaten your financial existence. In addition, you are committing an offense and may even be liable to prosecution if you deliberately withhold social security contributions. There is also a trap lurking here for clients: bogus self-employment is an issue in the creative industry – if it turns out that a “freelancer” would actually have been subject to compulsory insurance (possibly even as an employee), the company may be threatened with additional social security contributions. Although this primarily concerns normal social insurance, the KSK could also demand contributions if the contractor was not registered without justification.
• Failure to pay the artists’ social security contribution: The main risk for companies and users is overlooking or ignoring the KSK contribution. Start-ups without legal background knowledge are often unaware that a freelance web designer or illustrator, for example, is subject to KSK contributions. If such amounts are not reported, it will come to light at the latest during the next pension insurance audit. The company must then pay the tax retrospectively for up to five years, plus late payment penalties of 1% per month on the overdue amount. This can result in large sums that were not budgeted for. In the worst case – e.g. if a startup has regularly employed numerous freelancers – there is a risk of an additional payment in the five- or six-figure range, which can cause liquidity problems for the young company. Here too, ignorance is no defense against punishment. Since 2007, pension insurance inspectors have been tasked with checking the KSK levy obligation. It is therefore almost inevitable that omissions will come to light at some point. Companies should therefore assess all contracts with freelance creatives with regard to KSK from the outset and, if necessary, build up reserves for the levy.
• Misinterpretation of activities (demarcation problems): In the creative sector, there are often mixed profiles – e.g. someone who provides both artistic and non-artistic services. The distinction is not always easy. A frequent case: A freelancer takes on both creative tasks (design, text) and technical or consulting activities for a client. For the entrepreneur, the question then arises as to whether KSK tax is payable on the entire fee or only on the creative/artistic part. Errors here can lead to too much or too little tax being paid. Similarly, a self-employed creative who offers a technical service on the side may be unsure whether he is (still) insured via the KSK. Such uncertainties are typical stumbling blocks. It has been shown that it is advisable to clarify matters at an early stage – for example, by obtaining binding information from the KSK or by clearly separating the activities contractually. Anyone who fails to do this risks either additional claims or the loss of insurance cover if the KSK comes to the conclusion during an inspection that the activity does not (or no longer) fall under the KSVG. Example: A game developer who initially provides mainly artistic game design services (graphics, story) and is covered by the KSK shifts his focus more and more to the technical programming of a game. At some point, the KSK could make inquiries – e.g. during the annual report – and determine that the activity is no longer predominantly artistic. Without early adjustment, there is a risk of losing KSK membership. Such problems can be avoided by communicating openly with the KSK and, if necessary, changing status before a scandal arises (e.g. switching to voluntary health insurance when it becomes clear that the artistic activity is coming to an end).
• Bureaucracy and administrative burden: One point of criticism that is often heard is the supposed bureaucracy of the KSK. In fact, registration requires a number of formalities and annual reports (income estimates, fee reports) must be submitted. This may seem annoying for a creative founder. But the effort involved is limited and easy to plan. The consequences would be far more serious if you were to do without it – such as hours of discussions with private insurance companies or having to save for old age yourself, which requires disciplined financial management. The KSK bureaucracy should therefore be seen more as a necessary evil that brings great benefits. Nevertheless, you should be prepared: Meet deadlines (e.g. annual registration by March 31 for companies liable to pay the tax), report changes in good time and complete the necessary forms correctly. Many errors are simply the result of omissions – for example, if a move or new bank details are not notified and contributions are therefore not debited. If you are careful here, there is little additional work involved. It is advisable to create fixed routines in everyday business life (e.g. calculating income at the end of the year for the KSK forecast, recording fee payments to external parties on an ongoing basis for tax reporting, etc.). Then the bureaucracy can be planned.
• Criticism from third parties: It should be mentioned that there is also criticism of the KSK – albeit mainly from the companies liable to pay the levy. The German Taxpayers “Association, for example, complained that the artists” social security contribution was a considerable burden for small businesses and difficult to predict, and even called for the KSK to be abolished in 2010. From the perspective of the insured creative professionals, however, this is hardly desirable, as the KSK guarantees their social security. However, the criticism shows that companies should pay very close attention to compliance with the rules in order to avoid coming into conflict with the auditing authorities – the KSK is under observation and breaches of the rules are increasingly being prosecuted. Overall, it can be said that the benefits of the KSK far outweigh the bureaucracy and costs for those affected, as long as you are aware of your obligations. Problems arise primarily due to a lack of knowledge or a false reluctance to deal with the issue. The key here is to inform yourself at an early stage, seek advice and see the KSK for what it is – support, not harassment.

Practical tips for registering and dealing with the KSK in everyday life

Registration process: It is advisable for founders and new self-employed persons in the artistic field to deal with the KSK as early as possible – ideally during the start-up phase. Registration is carried out using the KSK questionnaire mentioned above. This can be downloaded from the KSK website or filled out (in some cases electronically). It is important to provide all information truthfully and completely and to enclose sufficient evidence. The KSK decides on the basis of these documents whether there is an insurance obligation. If the application is incomplete or the KSK requires further supporting documents, there will be queries – this will delay the start unnecessarily. Therefore: Carefully compile documents (e.g. artistic CV, portfolio, any press reports, order confirmations, invoices, etc., which prove the self-employed artistic activity). After sending the application – in many cases this still has to be done by post, although the KSK is working on digital solutions – you should expect a processing time of several weeks. If the decision is positive, the insurance can also start retroactively to the month in which the application was submitted so that there are no gaps in cover. In case of doubt, it is worthwhile maintaining an entitlement to private health insurance or short-term voluntary statutory health insurance membership in the meantime until the KSK decision is made.

After admission: If you are a member, you should be familiar with the annual routines. As an insured person, you will receive a letter from the KSK towards the end of the year asking you to submit your income estimate for the coming year (or to report any changes). This annual report forms the basis for the new contributions. If no report is made, the KSK usually accepts the previous value – which can be problematic if your income changes significantly. Tip: If you estimate a significant increase in income, for example, you should inform the KSK so that the contributions can be adjusted. Otherwise you may have to make additional payments (possibly with interest), as the pension insurance company can later find out your actual income from the tax assessment notice. Conversely, if a decline in turnover is foreseeable, you can submit a lower estimate in order to conserve liquidity. It is important that the estimate is realistic; deliberate misstatements could be considered an administrative offense. Changes in circumstances must be reported immediately during the year – the KSK provides change notification forms for this purpose. Examples Taking up part-time employment, changing health insurance company, spending a longer period abroad, acquiring an additional job or exceeding the age limit. All of this can have an impact on the insurance obligation and the KSK therefore needs to know. Caution is advised, especially when going abroad (which is not uncommon for digital nomads): The KSK generally applies to activities in Germany; if you spend a longer period abroad, the insurance obligation may end. In this case, it is essential to clarify in advance with the KSK and, if necessary, the health insurance company how protection can be maintained.

Collection of contributions and financial matters: The KSK usually collects the contributions monthly by direct debit. From the outset, founders should plan on paying approx. 15-20% of the profit every six months for social security contributions (this varies slightly depending on personal situation, family insurance, etc.). It is advisable to set aside these amounts from the first receipt of money to avoid a rude awakening. Although social security contributions are tax-deductible as special expenses, which reduces the income tax burden, you must first be able to pay them. When calculating hourly rates or project budgets in day-to-day business, you should therefore take your own KSK contribution obligation into account. Pricing: Many freelancers initially underestimate their costs – however, the KSK accounts for a significant proportion of the fixed costs of a self-employed person (similar to employer contributions for wages). A realistic hourly rate must therefore include health, long-term care and pension insurance contributions.

Companies and exploiters – comply with obligations: Start-ups, agencies or other companies that regularly work with freelance artists should establish an internal process for the KSK levy. It is recommended that all incoming invoices from freelancers are checked to see whether they are artistic/publishing services. If this is the case and there is no exception (e.g. corporation as contractor), the invoice amount should be recorded in a list for the artists’ social security contribution. These sums must be reported to the KSK by March 31 of the following year and the levy paid. It may make sense to appoint a responsible person in the team (e.g. the accountant or CFO) to take over the KSK declaration. If you are unsure whether an activity is subject to the levy, you can contact the KSK – there is a special questionnaire for checking the obligation to pay the levy. The KSK itself advises: Companies that are unsure should contact the KSK to clarify their tax liability and to avoid any disadvantages. The KSK offers advice and publishes information leaflets (e.g. a list of artistic activities and levy rates). It is far better to create clarity proactively than to face a subsequent audit.

Use of KSK resources: The KSK provides extensive information and assistance. The website contains fact sheets, FAQ sections and sample invoices. Recently, web seminars (online seminars) have also been offered in which KSK employees provide live information on specific topics – an opportunity to ask questions directly. Insured persons and companies should take advantage of these offers to stay up to date. Another practical tip: always document communication with the KSK in writing (e-mails, letters). If there are any discrepancies later on, you will have proof of notifications and information. Overall, the KSK is considered to be cooperative – it has an interest in ensuring that its insured persons and payers fulfill their obligations and will help with any problems of understanding.

Professional advice: Despite all the information, there may be cases in which the KSK issue becomes complex – e.g. in very unusual mixed constellations, in international situations or when larger contracts with freelancers have to be drawn up. In such cases, you should not hesitate to seek expert advice. Especially at the intersection of social security and corporate law, an external perspective can be very valuable. For example, a lawyer for media law or IT law can help you to correctly classify the KSK obligation for new online professions (YouTubers, influencers, etc.), and a lawyer for corporate law can provide advice if you are considering setting up a corporation and want to assess the impact on the KSK. Care should also be taken when drafting contracts with freelancers – a lawyer specializing in contract law can ensure that, for example, the issue of artists’ social security contributions is clearly regulated in the contract (it is customary to state that the client bears the contribution so that no dispute arises). This investment in advice is usually worthwhile, as mistakes or legal disputes would be significantly more expensive. Last but not least, your own tax advisor can also provide valuable advice on how to best incorporate KSK contributions into your financial planning.

Special features of mixed businesses (artistic and non-artistic activities)

Many founders and start-ups today operate in interdisciplinary fields – i.e. their activities include creative/artistic elements as well as technical or commercial components. This raises the question: How does the KSK treat such hybrid forms? There are two levels to be distinguished here: the personal insurance of the self-employed person on the one hand and the company’s obligation to pay contributions on the other.

(1) Self-employed person with a mixed range of activities: The decisive factor is which activity is the main activity. If someone carries out both artistic and non-artistic work (e.g. a self-employed photographer who gives IT training courses on the side), they are only subject to KSK insurance if the artistic/publishing activity is economically predominant. If, on the other hand, the other activity is the “main economic activity”, insurance via the KSK is excluded. In the example: If the photographer earns significantly more from IT training than from photographic art, the KSK would classify him as a non-artist (possibly after examination) – he would then have to take out regular voluntary insurance. If, on the other hand, the focus is on photography and the training courses are only a sideline, the KSK will continue to apply. The boundaries are fluid, but the KSVG provides a guideline: if the income from the other (non-artistic) activity reaches a certain threshold (2025: €48,300 per year), the person is exempt from insurance – in simple terms, this means that the art is only a secondary occupation. Below this threshold, it will be determined on a case-by-case basis what is to be regarded as the main occupation. Practical advice: If you work in two areas, you should separate them as clearly as possible – for example, issue separate invoices for artistic and non-artistic services – and make it clear to the KSK what proportion of your income comes from which area. This allows the KSK to assess the insurance obligation on a pro rata basis. It can happen that the KSK partially insures a person (for the artistic activity) and classifies the remaining part as exempt from insurance. In this case, only the income from art is used to calculate contributions. It is important that such arrangements are agreed and documented. Otherwise, you run the risk of the KSK assuming the wrong conditions at some point. For example, if you have been insured for a long time as an illustrator through the KSK and also set up a business as an online retailer, you should inform the KSK of this as soon as the latter takes on significant proportions. If necessary, it will be decided that the insurance obligation ends because the trading business now dominates. Continued insurance despite predominantly other activities is unlawful and would be reversed in the event of an audit. Conversely, no one has to fear losing KSK protection just because they occasionally accept orders from outside the industry – as long as these do not gain the upper hand, KSK membership remains in place. In case of uncertainty, it is advisable to send a written inquiry to the KSK with an explanation of the distribution of activities; the answer will provide clarity.

(2) Companies with mixed business models: The KSK insurance does not apply to legal entities or partnerships (GmbH, UG, OHG, GbR etc.) that are partly artistically active – because the KSK only insures natural persons. However, the obligation to pay contributions may still be relevant. The decisive factor here is not what the company’s main area of business is, but whether self-employed artists are commissioned at all. Example: A company operates an online portal (IT company), but also publishes an editorial blog for customer loyalty. The core business is not creative, but freelance authors are employed for the blog – these fees are subject to artists’ social security contributions (because it is publishing for the company’s own purposes). Mixed enterprises in the sense of companies must therefore take a close look: As soon as any sub-area includes artistic/publishing services, there is an obligation to pay the levy, regardless of whether the company as a whole is part of the creative sector or not. In practice, this is particularly relevant for advertising/marketing: almost every company places advertising at some point – be it an image video, graphics on the website, PR texts or social media content. If this content is created by external freelancers (instead of the company’s own employees), the company becomes a liable user. Many traditional SMEs are not aware of this, as they do not see themselves as an “artistic company”. Start-ups, on the other hand, which often rely heavily on marketing, should take into account from the outset that hiring an external illustrator or sound designer for the product video, for example, will trigger KSK levies. It is advisable to plan ~5% for KSK in the budget of every marketing campaign if you are working with freelance creatives.

In the case of mixed companies with subsidiaries or different business areas, the question arises as to whether outsourcing changes anything. Example: A company founds a separate marketing GmbH that takes over all creative tasks. This structure can shift the KSK levies internally under certain circumstances (the marketing GmbH would then be the user liable to pay the levy vis-à-vis freelance artists). However, the basic obligation to pay the levy remains – it just applies to a different entity. Companies should therefore not use such structures primarily to circumvent the KSK (especially as circumventions can be legally ineffective if they are only a sham). Instead, compliance should be ensured: all units of a mixed company record their artistic/publishing services and pay the levy.

In summary: In the case of mixed businesses – whether at personal or company level – it depends on the focus. Artists who also do other things only receive KSK protection as long as their artistic share predominates or at least does not completely fade into the background. Companies in non-creative sectors must pay the KSK levy for any artistic work, even if it only accounts for a small part of their activities. It is important to be aware of these principles in order to avoid paying unnecessary levies or missing out on mandatory levies. If in doubt, seek professional advice on how best to structure a mixed model: For example, it may make sense to show the fees for artistic and non-artistic services separately in contracts in order to be able to calculate the KSK levy exactly on the correct part. Here too, the rule of thumb is: it is better to clarify things early on than to have to correct them later. The KSK itself can provide advice, and specialized lawyers or tax consultants can point out solutions for more complex mixed forms that do justice to both sides – the creative and the non-creative.

Conclusion: early engagement with the KSK – essential despite the bureaucracy

At first glance, the Artists’ Social Security Fund may seem like another bureaucratic hurdle in the start-up process. Forms, certificates, percentage calculations – all this sounds like the kind of effort that creative entrepreneurs shy away from. However, the above explanations clearly show that it is essential to deal with the KSK at an early stage, despite the potential bureaucratic hassle. Why?

Firstly, the KSK is a statutory obligation for all those who fall under the KSVG. There is therefore no right of choice. Anyone who tries to circumvent the rules risks legal consequences and, above all, serious disadvantages for their own social security. Secondly, the KSK offers enormous financial relief and security benefits – especially for young founders in the media, culture and IT sectors – which should not be missed. Every euro that the KSK pays in contributions is effectively a subsidy from the state and the economy to the creative entrepreneur. Rejecting or delaying this support would make no business sense for most start-ups. Thirdly, a clear relationship with the KSK creates legal certainty. If social security contributions are paid correctly from the outset, there is no need to fear audits and additional claims. The company can concentrate on its core business without any latent risks in the background. On the other hand, later corrections – be it the subsequent payment of missing contributions or the hectic catching up of missed retirement provisions – are expensive and sometimes no longer possible (lost pension years cannot be bought back).

It should also be borne in mind that the KSK is politically intended to support creative people. As mentioned above, it is a social and cultural policy achievement that recognizes creative activity as important. Founders and creative people should see this privilege not as a burden, but as an advantage. Of course, it requires some administrative effort, but this is limited and can be easily managed with a little organization. Over time, many things become routine (e.g. the annual declaration) and thanks to digitalization, interaction with the KSK is becoming increasingly simple.

Recommendation: Make the KSK an integral part of your business planning at an early stage. Find out whether your activity is covered by it when you set up your business. Set up processes – with the help of your tax advisor if necessary – to pay contributions and levies on time. Do not be afraid to seek help if anything is unclear. The KSK itself provides advice, and there are specialist lawyers who are familiar with such issues. Especially in the area of media law and IT law – where new business models (streaming, games, etc.) meet traditional legal rules – advice is often worth its weight in gold. A lawyer for IT law or media law can, for example, assess whether your specific online concept falls under the KSK and help you set the right course. The same applies if you want to structure your company differently (keyword: corporate form) – in this case, a corporate lawyer should examine the implications for the KSK. Contracts with freelancers or cooperation partners should also be KSK-compliant; a lawyer specializing in contract law will ensure that agreements on the payment of duties, for example, are clear and valid. This early consultation and coordination may cost something, but it prevents potentially existence-threatening mistakes or disputes later on.

In the end, we must not forget: The Künstlersozialkasse exists to support artists and creative entrepreneurs so that they can concentrate on their creative work. Anyone who takes advantage of the opportunity to be socially insured through the KSK is acting responsibly – towards themselves, the company and society. You take on social responsibility in the form of contributions, but also receive solidarity protection and state recognition in return. The bureaucracy of the KSK is manageable and is disproportionate to the benefits it provides. Despite some formalities, it is therefore essential to get to grips with the KSK early and thoroughly. This not only secures your own future, but also creates confidence among business partners and investors that the company is professionally positioned. In short: the KSK may be compulsory, but above all it is an opportunity – and clever founders seize opportunities early on. This makes it clear that the Künstlersozialkasse is not a stumbling block, but a foundation for a successful and socially secure career in the creative industries. Neglecting social insurance is a risk that start-ups can easily avoid by keeping a close eye on the KSK from the outset.