Welfare in Germany

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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)


Health insurance[edit]


Main article: Pensions in Germany


Main article: Invalidity in Germany

Child support[edit]

Main article: Child care in Germany

Social care[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.

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