From Wikipedia, the free encyclopedia

(Redirected fromWelfare in Germany)

Jump to navigationJump to search

This articleneeds additional citations forverification. Please helpimprove this articlebyadding citations to reliable sources.Unsourcedmaterial may be challenged and removed.

Find sources:"Social security in Germany"–news·newspapers·books·scholar·JSTOR(June 2015) (Learn how and when to remove this template message)

Social security in Germanyis codified on theSozialgesetzbuch(SGB), or the "Social Code", contains 12 main parts, including the following,

• Unemployment insuranceandpublic employment agencies(SGB II and III)

• Health insurance(SGB V)

• Old agepension insurance(SGB VI)

• Invalidity insurance(SGB VII and IX)

• Child support(SGB VIII)

• Social care(SGB XI)

Contents

• 1Unemployment

  • 1.1Unemployment benefit I

  • 1.2Unemployment benefit II

• 2Health insurance

• 3Pensions

• 4Invalidity

• 5Child support

• 6Social care

• 7Funding

• 8Notes

• 9External links

Unemployment[edit]

Main articles:Unemployment benefits § Germany, andUnemployment in Germany

• Bundesagentur für Arbeit

Unemployment benefit I[edit]

Theunemployment benefit IinGermanyis also known as the unemployment insurance. The insurance is administered by the federal employment agency and funded by employee and employer contributions. This in stark contrast to FUTA in the US and other systems; where only employers make contributions. Participation (and thus contributions)aregenerally mandatory for both employee and employer. All workers with a regular employment contract, except freelancers and certain civil servants, contribute to the system. Since 2006, certain previously excluded workers have been able to opt into the system on a voluntary basis.

The system is financed by contributions from employees and employers. Employees pay 1.5% of their gross salary below the social security threshold and employers pay 1.5% contribution on top of the salary paid to the employee. The contribution level was reduced from 3.25% for employees and employers as part oflabourmarket reforms known asHartz. Contributions are paid only on earnings up to the social security ceiling (2012: 5,600 EUR). The system is largely self-financed but also receives a subsidy from the state to run the Job centers.

Unemployed workers are entitled to:

• Living allowance known as unemployment benefit

• Help in finding work

• Training

Unemployed benefit is paid to workers who have contributed at least during 12 months preceding their loss of a job. The allowance is paid for half of the period that the worker has contributed. Claimants get 60% of their previous net salary (capped at the social security ceiling), or 67% for claimants with children. The maximum benefit is therefore 2,964euros(in 2012).

Unemployment benefitII[edit]

If a worker is not eligible for the full unemployment benefits or after receiving the full unemployment benefit for the maximum of 12 months, he is able to apply for benefits from the so-calledHartzIVprogramme, an open-ended welfareprogramme. A person receivingHartzIV benefits is paid 409 EUR (2017) a month for living expenses plus the cost of adequate housing (including heating) and health care. Couples can receive benefits for each partner including their children. Additionally, children can get "benefits for education and participation". Germany does not have an EBT (electronic benefits transfer) card system in place and, instead, disburses welfare in cash or via direct deposit onto the recipient's bank account.

Healthinsurance[edit]

Main article:Healthcare in Germany

Germanyhas auniversal^[1]multi-payer health care system with two main types of health insurance: "Statutory Health Insurance" (Gesetzliche Krankenversicherung) known as sickness funds (Krankenkasse) and "Private Health Insurance" (Private Krankenversicherung).^[2][3][4]

Health insuranceis compulsory for the whole population in Germany. Salaried workers and employees below the relatively high income threshold of almost 50,000eurosper year are automatically enrolled into one of currently around 130 public non-profit "sickness funds" at common rates for all members, and is paid for with joint employer-employee contributions. Provider payment is negotiated in complexcorporatistsocial bargaining among specified self-governed bodies (e.g. physicians' associations) at the level offederal states(Länder). The sickness funds are mandated to provide a unique and broad benefit package and cannot refuse membership or otherwise discriminate on an actuarial basis. Social welfare beneficiaries are also enrolled in statutory health insurance, and municipalities pay contributions on behalf of them.

Besides the "Statutory Health Insurance" (Gesetzliche Krankenversicherung) covering the vast majority of residents, the better off with a yearly income above almost €50,000 (US$56,370), students and civil servants for complementary coverage can opt for private health insurance (about 11% of the population). Most civil servants benefit from a tax-funded government employee benefit scheme covering a percentage of the costs, and cover the rest of the costs with a private insurance contract. Recently, private insurers provide various types of supplementary coverage asan addupon of the SHI benefit package (e.g. for glasses, coverage abroad and additional dental care or more sophisticated dentures).

Thehealth economics of Germanysector was about US$368.78 billion (€287.3 billion) in 2010, equivalent to 11.6 percent of gross domestic product (GDP) this year and about US$4,505 (€3,510) per capita.^[5]According to theWorld Health Organization, Germany'shealth care systemwas 77% government-funded and 23% privately funded as of 2004.^[6]In 2004 Germany ranked thirtieth in the world inlife expectancy(78 years for men). It had a very lowinfant mortality rate(4.7 per 1,000live births), and it was tied for eighth place in the number of practicing physicians, at 3.3 per 1,000 persons. In 2001 total spending on health amounted to 10.8 percent of gross domestic product.^[7]

Pensions[edit]

Main article:Pensions in Germany

Invalidity[edit]

Main article:Invalidity in Germany

Childsupport[edit]

Main article:Child care in Germany

The child care system inGermanycan be seen as universal in coverage, though regulations may vary fromLandto Land, and betweenwestGermanyandeast Germany. It is viewed as a public problem shared by multiple roles of the society: parents, regional and local governments, non-profit organizations (usually churches) etc. Germany offers a wide range of child care programs for parents:day care centers(Krippe) for children up to age 3, preschool programs (Kindergarten) for children from age 3 to 6, primary schools (Hort) for school-age children. Aroundnighty-eight per cent of German day care isnon-for-profitand is heavily funded by the government. Ninety per cent of the costs are paid by state, regional and local governments through public taxes while the rest of the cost is paid by the parents.^[8]In western Germany, regulations of day care are enforced by state youth office (Landesjugendamt) in each Land, which distributes funds to day care centers according to a certain amount. Even though the enforcement is in a relatively decentralized form, there is still high conformity on regulatory requirements of the day care centers among different Land. For example, child/staff ratios vary from 17/1 to 25/1; group sizes of 25 in kindergartens; and training requirements for teachers. German child care system values highly of the quality of teaching staffs. In every German Land, a teacher must complete four to five years of training requirements, usually composed of one to two years ofpraktikum

, two years of college, and one year of additionalpraktikum(berufspraktikum).^[9]The tougher regulation on teachers' training requirements ensures the quality of child care service to some extent. There is no big market for private day care in Germany. Only 4% to 10% of mothers employchild minders(Tagespflege) in 1995.^[10]The main reason for this is that private child care providers cannot maintain profitability when facing the competition from the public providers which are generously funded by the government. And the high barrier to enter the market set by the government becomes one ofthe hinders. Although general condition of the child care system can be applied to most of the cases and regions in Germany, there are noticeably big regional differences, especially between west andeastGermany. The regional variations in child care supply reflect the fact that regulations are being made at the local community level. According toTietze,Rossbach&Roitschsurvey in 1994, there are variations in the supply of day care services between rural and urban areas, with rural areas being at a disadvantage. IneastGermany, there are much larger number of day care slots than in west Germany and higher rate of child care provision, as an inheritance from its former socialistGerman Democratic Republic. The opening hours of the day-care centers vary as well. InwestGermany the opening hours of Kindergarten are short, only for half of the day; while in east Germany 97% of the kindergarten offers all-day care including lunch.^[11][12]Child care policies in Germany focus more on children's development and equal opportunities to succeed after kindergarten rather than focusing on helping to solve the compatibility of work and family for parents. Thus it explains the fact that Germany aims to provide high-quality early education for children but set the opening hours of day care centers to be short and not convenient to the working parents.^[13]

In many social studies, child carepolicy together with social norms about gender roles havecast big impact on women's participation in labor force and fertility choice. Having one of the lowest fertilityrateamong European countries, Germany has on average 1.38 children per woman in 2008 and it keeps on having high level of childlessness among parents. Women in Germany, as in many other countries, face the dilemma between work and family.^[14]InwestGermany, female participation in labor market is low as German income tax system discourages women from labor market due to high unemployment rate. Even for women who have jobs, they usually stop working at the birth of the child because mothers are seen as the best child care providers. 3-year period ofparental leaveis provided by the government, with low cash benefits paid under the terms of health insurance. Women tend to stay as housewives when kids are young and return to part-time works after their children grow older. Full-time employment rates are even lower.^[15]IneastGermany, however, it witnesses one of the highest female labor participation rate among European countries. As high as 85 per cent of adult women, including those with young kids, participate in labor market. For working mothers, there are several informal child care arrangements they could have. Usually they have their children to be cared for by grandparents or other close relatives. Others send their kids to day care centers. 60% ofeastGerman children under age 3 are cared for by the day centers and over 90% of children aged 3 to 6 attend full-day preschool program.^[16]

Apart from maternity leave, parents are also entitled to a paid leave if their children are ill at home.

Socialcare[edit]

Main article:Social care in Germany

Funding[edit]

The social security system in Germany is funded through contributions paid by employees and employers. The contributions are paid on all direct wages as well as indirect wages up to a ceiling.

Source:https://en.wikipedia.org/wiki/Social_security_in_Germany

Germany(according to ILO)

Source:http://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&p_isn=77191

The German Social Security System(ACCORDING TO GTAI)

On this Page

• Components of Social Security Insurance

• Allocation of Contributions

• Payroll Accounting and Social Security Contributions

• Regulations for Foreign Employees

Components of Social Security Insurance

In contrast to some other industrialized countries, the core social security in Germany is financed collectively by means of a process of redistribution. The current costs (for pensioners, sick people or those in need of nursing care, and unemployed people) are paid directly from contributions by employees and employers.

Social security contributions are made up of:

• Health insurance

• Nursing care insurance

• Pension insurance

• Unemployment insurance

• Accident insurance

Generally speaking, social security contributions are roughly shared equally by employer and employee. Only the costs for accident insurance are exclusively borne by the employer. In total, the employer's share of social insurance contributions amounts to approximately 21 percent of the employees gross wage.

Social Security Contributions in Germany

1)plusminor allocations

2)plusadditional contribution which each health insurance company individually may impose on employer and employee (equal shares). The average additional contribution for 2019 defined by the Federal Ministry of Health is 0.9%.

3)childlessemployees aged above 23 years pay an extra 0.25% nursing care insurance. Specific regulations apply in the federal state of Saxony.

4)averageaccident insurance contribution 2017 according to the German Social Accident Insurance (DGUV)

Source:https://www.gtai.de/GTAI/Navigation/EN/Invest/Investment-guide/Employees-and-social-security/the-german-social-security-system.html