The German social security system covers unemployment, health, pension, sickness, and carer's insurance, as well as maternity benefits and child allowances and is funded by contributions from the employed, employers and self-employed as well as the state, in four insurance schemes:

• Health insurance (Krankenversicherung)
• Unemployment insurance (Arbeitslosenversicherung)
• Nursing care insurance (Pflegeversicherung)
• Pension insurance (Rentenversicherung)

The people covered are:

• Employed persons (including apprentices)
• Most self-employed persons
• Carers for children under the age of three
• Recipients of social benefits (for example unemployment benefit)
• Conscripted soldiers or those doing community service instead of military service

The Main Organisations

• The Federal Ministry of Health (Bundesministerium für Gesundheit, BMG) provides general supervision over health insurance matters
• The Ministry for Work and Social Matters (Bundesministerium für Arbeit und Soziales, BMAS) regulates social and unemployment contributions as well as general conditions for access to benefits
• The Institute for Pension Insurance (Bundesversicherungsanstalt) is the national pension insurance body. State insurance institutes (Landesversicherunganstalten) administer the pension funds of employees in their area
• Unemployment benefit registration and payments are made through the local employment agency (Arbeitsagentur)
• To find the nearest district unemployment office: Click here
• Social benefits for those on low income are administered by either the social offices (Sozial Ämter) of the city or town council of residence or the Arbeitsagentur or jointly

Separate organisations administer benefits for the employed, self-employed, agricultural workers and miners. Health insurance funds (Krankenkassen) normally collect contributions for employees from employers for all areas of social security cover, apart from accident insurance which is administered by the Agency for Occupational Health (Berufsgenossenschaften).

Contributions

Employees

As an employee, contributions are compulsory for all employment other than temporary work (for example less than two months or fewer than 50 days of work). Workers must choose their health insurance fund (Krankenkasse) from a list of accredited organisations and are then registered with the chosen fund by their employers. Some of the major health insurance funds are:

• AOK (Allgemeine Ortskrankenkasse)
• BKK (Betriebskrankenkasse):
• TKK (Techniker Krankenkasse)
• DAK (Deutsche Angestellten-Krankenkasse)

The funds also deal with registration in the pension, unemployment and care schemes and provide employees with a social security number and a social security insurance document (Angestelltenversicherungnachweisheft).

In addition, employers are responsible for registering their workers with the relevant occupational health agency (Berufsgenossenschaft) for accident insurance.

The employer deducts the relevant contributions from the gross monthly salary and pays them into the worker's health insurance fund. Exact percentages vary between 13 percent and 15 percent of income up to €3,525. Any additional income is not considered for calculation of contribution levels. Employers pay an equivalent amount into the fund. Earnings limits and contribution rates for social insurance (including health insurance) are set each year by the German parliament (Bundestag).

Workers are exempt from pension contributions if they work less than 15 hours a week or are working on short-term contracts.

Self-employed

Not all self-employed people are able to join the state social security system. Self-employed artists, journalists and members of the publishing profession whose income exceeds a certain level need to deal with the Artists' Social Fund (Künstlersozialkasse). Other self-employed workers may opt in to the state schemes voluntarily.

A self-employed worker who works primarily on a long-term basis for one major client or employer must also pay pension fund contributions.

New business start-ups may be exempt from contributions for up to three years.

International citizens

EU and EEA citizens: Agreements are in place between the EU and the European Economic Area member states to ensure that social security entitlements are retained and transferable between countries. On leaving their countries, EU workers should obtain the relevant forms from their own social security authorities to ensure they obtain social benefits swiftly when they get to Germany.

USA, Canada, Australia: These countries have social security agreements with Germany allowing their citizens to make claims for benefits during the time they worked in both nations. Workers from these countries may be exempt from paying pension contributions. Their employer should file an application with the chosen Krankenkasse. This application has to be accompanied by a certification that the worker is covered by the social security system of their country.

Benefits and How to Qualify

EU citizens who are resident in Germany are generally eligible for social security and unemployment benefits as well as income support, but need to submit evidence of prior contributions in their previous country of residence (E-forms). There is no minimum qualifying period for health insurance, but claimants need to have worked at least 360 days over the last three years. Previous periods of employment in another EU country are taken into consideration, if recorded on form E301.

There is currently no minimum wage in Germany, apart from in the construction industry.

Health Insurance

On joining a Krankenkasse, workers are issued with a health insurance card which is used for all health matters. Present this card to the doctor to receive all types of medical assistance.

A new and improved electronic health card is currently (from 28 February 2007) being tested in locations throughout Germany. This card holds both administrative and health data of the insured as well as a photograph of the holder (except for children under 16 and people requiring constant medical attention). The exact introduction date is not yet known. This card also acts as a European Health Insurance Card entitling holders to health care in other EU member states.

The state health insurance scheme is administered by local health insurance funds (Krankenkasse) and the following treatments are provided by health professionals under contract with these funds (Kassenarzt):

• Medical and dental treatment
• Hospital treatment
• Drugs, dressings, complementary treatment such as massages and aids such as hearing aids and wheelchairs
• Home help if the insured person has a child under 12 living in their home and must go into hospital and is thus unable to look after the household
• Home nursing care if this helps to avoid or shorten a stay in hospital
• Orthodontic treatment up to the age of 18
• Preventive measures and rehabilitation

All employees whose gross salary does not exceed €46,800 (€3,900 per month, 2005 figures) are obliged to take out statutory health insurance. Workers who earn more than this limit, or who are self-employed (though not self-employed artists) may opt for private health insurance policies. Please note that some doctors will only see privately insured patients.

Patients' Contributions

Patients make small additional payments towards certain health costs and medical bills (approximately 10 percent and €10 per quarter for consultations), such as prescriptions, hospital expenses and transport costs (in the case of ambulance transfers for broken bones and so on) or when consulting their doctors (Praxisgebühr); the health professional bills the relevant Krankenkasse directly for the remainder of the fee. Children under 18 are exempt from this fee and where the patient receives social benefit payments, the fee is much reduced.

Unemployment Benefit (Arbeitslosengeld I /II)

This covers all employed people, including home workers, apprentices and trainees. It excludes self-employed workers and people involved in so-called "mini-jobs" (workers who earn less than €400 per month)

There is a minimum qualification period of 360 days of employment over the last three years. The amount and duration of the benefit will depend on the previous income and the duration of the previous employment.

Benefit claimants must also be registered at the local employment office and be capable of and available for work and be able to prove they are actively looking for employment. Claimants must not be absent from their usual place of residence for longer than three weeks in each year. These holidays must be agreed in advance with the unemployment office agent.

Full employment benefit (Arbeitslosengeld I)

If the claimant has no children, they will receive 60 percent of their previous net earnings. If caring for children under 18, this rises to 67 percent. This benefit is payable for 90–360 days, depending on the length of previously insured employment and age. A full year's unemployment benefit is received if the person has worked for two calendar years or more (18 months for those aged over 55).

Subsistence allowance (Arbeitslosengeld II)

This allowance is lower than ordinary unemployment benefit and is payable when the claimant cannot receive full benefit or their period of benefit has come to an end, but they are still fit to work and registered as a job-seeker. Whether or not a person can claim for Arbeitslosengeld II will depend on savings, husbands or wife's earnings and life insurance. A set amount is paid for those requiring social assistance (about €350 per month). Claimants must attend training courses, and be ready to step into any job offered them by the Arbeitsamt, even a very low paid one.

Sickness benefits (Krankengeld)

The employer is responsible for paying the worker's full salary for up to six weeks, thereafter the Krankenkasse pays 70 percent of gross earnings (up to a maximum of 90 percent of net earnings). Benefits are paid for up to 78 weeks in a three-year period for the same illness.

If a child is ill, sickness benefit is paid for up to 10 working days per child, but no more than 25 days per insured person in each calendar year, regardless of how many children are ill. In single-parent households, this entitlement doubles to 20 and 50 days, respectively.

Maternity benefits

The period of statutory maternity leave of 14 weeks can be extended where there is danger to the health of the mother or the baby.

Maternity benefits (Mutterschaftsgeld) are available to all employees who are active contributors to a health insurance fund. Mothers are entitled to their full net income, of which a certain percentage is paid per month by the health insurance fund and the rest by their employer.

Child Benefit allowance (Kindergeld)

Parents receive child benefit, which is paid monthly for each child up to the age of 18 (21 if unemployed, up to 27 if in full time education). A slightly higher benefit is paid for the fourth child and any further children. Parents may claim a continued allowance for disabled children over the age of 27 if they are unable to care for themselves and the disability occurred before the age of 27. Should the disabled person receive income that exceeds €7,680, they will no longer be entitled to this allowance. Claims can be made at the local family benefits fund (Familienkasse) or the local employment office (Arbeitsagentur).

• More information on child benefits can be found on Eltern.de, a website with information on becoming and being a parent in Germany

Carer's insurance (Pflegeversicherung) Benefit

A carer's allowance is payable to insured people who organise care provision for themselves. The allowance depends on the degree and frequency of care required. This may be supplemented with in-kind support, such as the work provided by a professional care worker. When care giving comes to an end, former carers have the right to a temporary allowance to facilitate their return to work.

Parents may also be entitled to care insurance payments if they can prove that caring for their disabled child is considerably more time-consuming than for a non-disabled child of the same age.

Further information can be obtained from the local health insurance organisation (Krankenkasse).

Old-age pension (Altersrente)

Pension benefits are available to those aged 65 with at least five years of social security contributions. The total amount of the pension is calculated using individual annual earnings points as contributed over the years. In general, the longer the duration and value of contributions have been, the higher the final pension will be.

Top-up pensions (Riesterrenten) are available through additional private pension schemes.

Early pension: it is possible to receive a pension at an earlier age, depending on certain conditions such as minimum years of contribution, age of application and employment status. Similarly, partial and deferred pensions (after 65) are possible. Further information can be obtained from the state pension office (Landesversicherungsanstalt).

After the death of the insured person, a reduced pension may be payable to their surviving spouse (Witwenrente/Witwerrente) or their orphaned child (Waisenrente).

Pension based on reduction in earning capacity (Erwerbsminderungsrente)

People who are unable to work for more than three hours a week based on normal working conditions and whose disabilities are unlikely to change in the foreseeable future are entitled to a full pension. The amount of this pension is halved if the working hours extend to between three and six hours per week.

The assessment of working capacity is linked to health reasons and not to the person's capacities for a current, specific job, this means that the applicant is judged against their potential participation in the general job market and not solely their own previously chosen profession.

The monthly amount depends on the pensioner's years of contribution, their previous and current average earning and their place of residence in Germany (for example in the "old" or "new" German federal states). The pension fund (Rentenversicherungsträger) of the disabled person can give further information and process claims.

Additional benefits

Additional benefits may be available to those on low incomes and socially disadvantaged people. Financial payments, such as accommodation benefit (Wohngeld), heating benefit (Beitrag zu den Heizkosten) and additional child benefit (Kinderzuschlag), and other support are available through the social offices (Sozialämter) of town and city councils throughout Germany.

Further Information

• AngloINFO INFOrmation page on Unemployment & Jobseeking in Germany
• Information from the German Embassy in the USA
• Federal Employment Agency

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