Annual earnings

Why is the grant/scholarship converted into annual earnings?

The employment pension system always converts all earned income into annual earnings. When you apply for pension insurance based on a grant/scholarship, the awarded funds are converted into annual earnings within the employment pension system.

Do annual earnings mean that I will pay my insurance premiums on the basis of one year’s work, even though I work for a shorter period on my grant/scholarship?

No. The process of converting grant/scholarship funds into annual earnings is simply a calculatory procedure, which establishes a basis for the insurance premium invoiced from you and possible compensations payable from the insurance. The sum of your insurance invoice is calculated in accordance with the actual validity period of the insurance.

Updated 12.11.2015