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Welfare in Germany

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Title: Welfare in Germany  
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Subject: Germany, Welfare in Germany, Banking in Germany, Healthcare in Germany, Welfare in Romania
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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)


Health insurance



Child support

Social care


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

See also


  1. ^ Financial results of the Employment Agency


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