German status determination procedure (Statusfeststellung) — freelancer or employee?

A client and a contractor can have the German Pension Insurance Federal Agency (Deutsche Rentenversicherung Bund, its Clearingstelle) decide, in writing or electronically and with binding effect, whether an engagement is employment (Beschäftigung) or self-employment (§ 7a(1) sentence 1 SGB IV) — online with form V0027, free of charge, in three months on average. The timing of the application decides the consequences: if it is made WITHIN ONE MONTH of the work starting and employment is found, the day the decision is notified counts as the start of employment, provided the worker consents and had cover against sickness and for old age in the meantime (§ 7a(5) SGB IV). Filed later, that deferral does not apply.

Up to date for 2026 — verified on September 23, 2026Official formGuide: about 45 min

This content is part of the path: Social security cover as a self-employed person· Step 4 of 7· Next step: Compulsory pension insurance for the self-employed in Germany — registering with V0020

Deadlines

Application within ONE MONTH of the work starting: § 7a(5) sentence 1 SGB IV — only then does the notification date count as the start of any employment found, and only with the worker's consent (no. 1) and cover against sickness and for old age for the interim (no. 2)
Application more than one month after the start: no deferral of the start: § 7a(5) SGB IV does not apply; § 7a provides no other deferral for that case. The application itself remains admissible — there is no cut-off deadline
Forecast decision (Prognoseentscheidung): BEFORE the work starts: § 7a(4a) sentence 1 SGB IV — changes to the agreements or their performance up to one month after the start must be reported without delay (sentence 3); the provision expires at the end of 30 June 2027 (subsection 7)
Information and documents: within the period the DRV sets: § 7a(3) sentence 2 SGB IV — the DRV sets a reasonable period
Action to compel a decision: admissible after three months: § 7a(6) sentence 3 SGB IV, by way of derogation from § 88(1) of the Social Courts Act (SGG)

Documents to prepare

Employment, service or managing-director contract
For working shareholders: the shareholders' agreement
Job description and an explanation of any oral agreements
Date the work started (decisive for the one-month window of § 7a(5) SGB IV)
Evidence of cover against sickness and for old age until the decision
Details of any proceedings already opened by the collecting agency, or of a payroll audit, if there are any

Who this applies to

Clients using a freelancer, and the freelancer: either party may apply; if only one does, the Clearingstelle brings in the other (§ 7a(1) sentence 1 SGB IV, DRV popular questions)
A third party for whom the work is actually performed, where there are indications of integration and instructions: it may also apply (§ 7a(2) sentence 3 SGB IV, in force until 30 June 2027)
Spouses, civil partners and descendants of the employer, and managing shareholders of a GmbH: here the COLLECTING AGENCY (Einzugsstelle) applies of its own motion as soon as the employer's report shows it (§ 7a(1) sentence 2 SGB IV)
Engagements that have already ended: there is no cut-off deadline for applying (DRV popular questions)
NOT possible where, when the application is made, the collecting agency or another insurer had already opened proceedings to establish compulsory insurance based on employment (§ 7a(1) sentence 1 SGB IV)
NOT needed where the status has already been settled, for example by a health insurance fund or a payroll audit of the client (DRV popular questions)
NOT binding: the DRV's self-check of employment status (Selbstcheck Erwerbsstatus) is non-binding and anonymous and does not replace the procedure

Worked example

Nordlicht Logistik GmbH and developer Jana Albers

Nordlicht Logistik GmbH engages software developer Jana Albers from 1 February for twelve months at a fee of 7,500 euros a month. Jana works three days a week in the client's office, within the team, following the IT department's instructions — the indications of employment named in § 7(1) sentence 2 SGB IV: work under instructions and integration into the instructing party's organisation. On 20 February, within one month of the work starting, they jointly file application V0027. After review the Clearingstelle informs them that it intends to find employment and gives them an opportunity to comment (§ 7a(4)). The decision is notified on 15 May. Because the application was made in time, Jana consents and she has had private health insurance and private pension provision since February, 15 May counts as the day she entered employment (§ 7a(5) sentence 1) — February to mid-May stay outside the employment, and the total social insurance contribution only falls due once the decision can no longer be challenged (subsection 5 sentence 3). Had they applied only in June, the one-month window would have passed: subsection 5 would not apply, § 7a defers the start by no other route, and the deferral to the notification date is lost — even though Jana consents and was covered.

How to fill it in, step by step

Start with the DRV's non-binding self-check of employment status to learn the criteria — it does not replace the procedure.
Decide on timing: before the work starts (forecast decision, § 7a(4a) SGB IV, a written contract is needed) or at the latest within one month of the start, so that § 7a(5) SGB IV can apply.
Check whether a collecting agency or another insurer has already opened proceedings, or whether the status is already settled: the application is then excluded or unnecessary (§ 7a(1) sentence 1 SGB IV).
Gather all documents: employment, service or managing-director contract, the shareholders' agreement for working shareholders, a job description and an explanation of any oral agreements.
File the application for a determination of employment status with the Clearingstelle of the DRV Bund, online with form V0027 through the DRV's eService, or in writing.
As the contractor: take out cover against sickness and for old age for the period until the decision, of a kind corresponding to statutory health and pension insurance benefits (§ 7a(5) sentence 1 no. 2 SGB IV), and keep the evidence.
Answer the Clearingstelle's requests within the period set (§ 7a(3) SGB IV) and use the hearing on the intended decision (§ 7a(4) SGB IV).
Review the decision: an objection and an action have suspensive effect (§ 7a(6) sentence 1 SGB IV); in objection proceedings you may request an oral hearing once the objection has been reasoned (sentence 2).
As a client with several identical engagements: request an expert opinion for identical engagements (§ 7a(4b) SGB IV) and hand new contractors a copy.

Good to know

The DRV decides on an overall assessment of all the circumstances of the individual case (§ 7a(2) sentence 1 SGB IV). Two identical contract templates can therefore lead to different outcomes.
Employment is non-self-employed work, in particular in an employment relationship; indications are work under instructions and integration into the instructing party's organisation (§ 7(1) SGB IV).
Other insurers are bound by the DRV Bund's decision when assessing compulsory insurance arising from the engagement (§ 7a(2) sentence 4 SGB IV).
The hearing on the intended decision is dropped where the DRV grants a concurring application by the parties (§ 7a(4) sentence 2 SGB IV).
A forecast decision is based on the written agreements and the intended circumstances of performance; if a material change arises, the DRV revokes the decision under § 48 SGB X (§ 7a(4a) SGB IV).
Where the DRV has assumed self-employment in an expert opinion and employment is later found for an identical engagement, compulsory insurance only begins on notification of that decision, provided the cover under subsection 5 sentence 1 no. 2 existed — for engagements concluded within two years of receiving the opinion (§ 7a(4c) SGB IV).
TIME-LIMITED: subsection 2 sentences 2 and 3 (third parties), subsections 4a to 4c (forecast decision, expert opinion) and subsection 6 sentence 2 (oral hearing) expire at the end of 30 June 2027 (§ 7a(7) SGB IV).
According to the DRV the procedure is free of charge and takes three months on average; complete documents and prompt answers speed it up.

Common mistakes

Applying only after several months. Deferring the start of employment to the notification date is only available for an application within one month of the work starting (§ 7a(5) sentence 1 SGB IV).
Applying in time but having no cover against sickness and for old age for the interim. Without it subsection 5 does not apply (sentence 1 no. 2).
Assuming the client alone decides on the deferral. The worker must consent (§ 7a(5) sentence 1 no. 1 SGB IV).
Relying on the wording of the contract. The DRV assesses all the circumstances of the individual case, including how the work is actually performed (§ 7a(2) sentence 1 SGB IV).
Applying although the health insurance fund has already opened proceedings on compulsory insurance. The application is then excluded (§ 7a(1) sentence 1 SGB IV).
Treating the self-check of employment status as a decision. It is non-binding.
Planning around the forecast decision or the expert opinion as if they were permanent. Both provisions expire at the end of 30 June 2027 (§ 7a(7) SGB IV).

Frequently asked questions

Who can apply?

The parties, i.e. client and contractor, jointly or one alone; the Clearingstelle brings in the other party (§ 7a(1) sentence 1 SGB IV). Under the conditions of subsection 2 sentence 2, also the third party for whom the work is performed (sentence 3).

What happens if I apply within one month?

If the DRV finds employment, the day the decision is notified counts as the day employment began — provided the worker consents and had cover against sickness and for old age for the interim, of a kind corresponding to statutory health and pension insurance. The total social insurance contribution only falls due once the decision can no longer be challenged (§ 7a(5) SGB IV).

And if I apply later?

Then § 7a(5) SGB IV does not apply, and § 7a provides no other deferral of the start. You can still apply, even for engagements that have ended — there is no cut-off deadline.

Can I settle the status before the work starts?

Yes, with a forecast decision (§ 7a(4a) SGB IV). According to the DRV this requires a written contract already concluded and settled circumstances of performance. The provision applies until the end of 30 June 2027 (subsection 7).

How do I challenge the decision?

By objection and action, which have suspensive effect (§ 7a(6) sentence 1 SGB IV). Once the objection has been reasoned, you may request an oral hearing, to be held jointly with the other parties (sentence 2).

What does the procedure cost?

Nothing: the DRV states that the procedure is free of charge. It takes three months on average.

Go further

Compute the related amounts

Understand this form: the related course

Bogus self-employment and pension insurance in Germany

Related forms

Official sources

§ 7a SGB IV — determination of employment status (Gesetze im Internet) — September 23, 2026
§ 7 SGB IV — employment — September 23, 2026
German Pension Insurance — the status determination procedure — September 23, 2026
German Pension Insurance — popular questions on the status determination procedure — September 23, 2026

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Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.