Welfare in Germany
Social security in Germany is codified on the Sozialgesetzbuch, or the "Social Code", contains 12 main parts, including the following,
- Unemployment insurance and public employment agencies (SGB II and III)
- Health insurance (SGB V)
- Old age pension insurance (SGB VI)
- Invalidity insurance (SGB VII and IX)
- Child support (SGB VIII)
- Social care (SGB XI)
Unemployment
Main articles: Unemployment benefits § Germany and Unemployment in Germany
- Bundesagentur für Arbeit
Pensions
Main article: Pensions in Germany
Funding
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.
| Type | Last change | Employer contribution rate | Employee contribution rate | Notes |
|---|---|---|---|---|
| State Pension | January 2013 | 9,45 % | 9,45 % | Ceiling: West Germany 69,600€, East Germany 58,800€ |
| Health insurance | January 2011 | 7,3 % | 8,2 % | Ceiling: 48,600€ |
| Unemployment in Germany | January 2011 | 1,5 % | 1,5 % | Ceiling: West Germany 69,600€, East Germany 58,800€ |
| Invalidity Insurance | January 2013 | 1,025 % | 1,025 % | 0,25 % supplement for childless employees In Saxony 0,525 % for employer and 1,525 % for employee |
| Accident Insurance | 1,6 % | -- | varies by sector depending on risk | |
| Sick pay insurance | between 1,5% & 3,6% | depends on the proportion of employees on short hour contracts. Applies to companies with fewer than 30 employees | ||
| Maternity leave | -- | Rate set by the health insurance company depending on the wage bill | ||
| Wage guarantee fund | January 2013 | 0,15 % | -- | The contribution rate is adjusted according to the reserves managed by the Federal employment agency. In 2013 they totaled 247 Million euros[1] |
| Holiday pay | -- | Financed by companies |
Notes
References
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