Welfare in Germany

The statutory social security in Germany is the most important institution of social security. The pros and preparedness by social security is closely regulated by law, the organization is carried out by self-managed insurance carrier. The power requirement of one year is almost entirely financed by the premium income of the insurance obligation of the same year, that is, accumulated capital is primarily used only as a short-term fluctuation ( sustainability reserve, generation contract ). The services are provided primarily as same for all insured benefits in kind ( solidarity principle) or as contributory cash benefits ( eg pensions, sick pay ). The tasks of the social security in addition to the insurance benefits in the narrow sense include prevention and rehabilitation.

In Germany, the social security systems are strongly linked to the level of remuneration for employment. Inactive people, mostly women, are mainly involved indirectly via a coinsurance at the working household. These result from the erosion of the standard employment relationship and changes in family structures, problems in financing.

The Social Security ( SV) in Germany consists of five branches:

• Unemployment insurance ( ALV)
• Statutory Health Insurance ( SHI )
• Care insurance ( PV)
• German Pension Insurance ( RV)
• Social Accident Insurance ( UV)

History

Since 1883, initiated by the so-called Imperial Embassy, a hedge of the working population, especially the industrial workers against accident, illness and the risks of disability and age sought. In particular, the industrial productivity should be backed up. There have been gradually built up the following classes of insurance:

Only when health insurance is a restricted competition for members between the structured types of insurance in health insurance and against the private medical insurance companies. The following long-term care health insurance, that is, with the choice of health insurance, the care fund is also elected at this. In the other classes of insurance, there are monopolistic allocations, that is, only a competent institution.

Legal form

The approximately 550 carriers of the German social insurance ( health insurance companies, trade associations, pension funds and others) are organized as corporations under public law. They are controlled by the self-governing bodies elected by employers and insured in the social choice. Exceptions are the Federal Labour Agency, whose board of directors is third equal number of representatives of workers, employers and the government, the Federal Miners, disparitätisch employers 1/3 of the representatives and employees provide 2 /3 of the representatives at the and the substitute funds whose Board of Directors is elected by its members. All social security institutions subject to state supervision by state and federal government departments.

Legal basis

Legal basis of the social security is the Social Code ( SGB). Following items apply to the above-mentioned insurance:

• All branches of social security: Fourth Book of the Social Code (SGB IV)
• Health Insurance: Fifth Book of the Social Code (SGB V)
• Pension: Sixth Book of the Social Code (SGB VI)
• Accident insurance: Seventh Book of the Social Code (SGB VII)
• Care Insurance: Eleventh Book of the Social Code (SGB XI)
• Employment Promotion: Book Three of the Social Code (SGB III)

Whether the rules are adhered to, it is checked in so-called social audits of the company at regular intervals.

In addition, the general rules that are found in the Code of Social Law I and X apply. A few rules are still to be found in the Reich Insurance Code ( RVO).

Financing

Is financed by the social security for the most part from contributions, in some branches also from tax revenues ( see Health Fund). The contributions are oriented up to the contribution ceiling on gross wages and salaries ( BLG ). Overall, the social security contributions in February 2010 for normal and low earners accounted for approximately 31.25 to 33.35 % of compensation of employees (Only the employer's share: about 9.95% pension, about 7.0% health insurance, 1.4% unemployment, about 0.975 % long-term care - a total of 19.325 %) from. The percentage is lower for incomes that are above the income thresholds.

Social security contributions are formally part, so each supported " equal " to half of employers and employees. The social security contributions are part of the BLG, while the social security contributions together with the BLG form the compensation of employees.

The accident insurance contributions borne by the employer alone. In the area of ​​health insurance in 2005 0.9 % of the contributory income is since 1 July alone worn by the member as an additional contribution (and the employer received by a discharge of 0.45 %). However, employers bear the social security contributions for income up to 800 € per month with larger proportions. As a long term care insurance was introduced in 1995, the workers had on a holiday, the Day of Atonement, forgo in return. In the state of Saxony of the holiday remained there workers wear 1.35% and 0.35% of the employer contribution. Finally, parts of services ( so-called " non-insurance benefits " ) in the field of health insurance paid for by grants from the state budget ( for example, tobacco and petroleum ). The employer has to bear additional burden of occupational pension schemes, continued wage payments in case of illness and holidays, saving schemes or staff development costs. Extrapolating this to the social security contributions added, obtained for him a premium of approximately 24-25 % on the gross salary of the employee. The employer " worn " part is taken into account in wage costs for the employee and moved so by lower gross wages to the employee. The real content remains unchanged from the declared as the " employer's share " payment. This scheme has existed since the introduction of compulsory social insurance in 1883.

In the figure, the GNI is equal to 100%. The four lower sizes in the picture Net wages and salaries ( dark blue), employees' social contributions (blue tile ) and the employer (yellowish tiled ) and the wage tax (black tiled ) represent the compensation of employees Represents the compensation of employees without the contributions of the employer are BLG, the reference size (up to the contribution ceiling) for social security.

Discussion of the development

Of the employers the fundamental equal funding is increasingly placed on the question. They argue that high -wage labor costs accelerated job losses and the increase in undeclared work, which would exacerbate the financial problems of Social Security for the lost revenue in the end (see also Agenda 2010, cuts in social services, aging ).

For several years, it is considered to provide the social security to another financial base. This is especially true in the area of ​​health insurance, where a citizens' insurance or a health premium is discussed. This is mainly because that the benefits paid are no longer predominantly in the health insurance relative to the amount paid. This is due to the shift of power from the center of gravity ( contributory ) sick pay (formerly 95 %, now 5% ) to the cost (regardless granted by the contribution ) medical services. The Sinnhaftigkeiten of compulsory insurance limit, income threshold and the one-sided orientation on labor income are discussed controversially. It calls for the inclusion of civil servants and self -employed in the statutory health insurance. Other concepts before a reversal in partially funded and private insurance. In some branches of social degradation of the benefits have already been introduced. Stronger co-payments by the insured (eg consultation fee ) but also serve by providing cost-consciousness of the damping of the power demand.

Computed values ​​of social insurance in Germany

For the purposes of equitable contributions and benefits continuation of the basic conditions to be determined by the conditions laid down in law or regulation operands of social security for one year.

The statutory social security in the national accounts

The State Social SV, together with the local authorities (federal, state, local ) the government sector.

The borrowing of general government total in delineation of National Accounts (SNA ) is the subject of the " Maastricht criteria ".

The financial balance of the SV in demarcation of the national accounts in contrast to the definition of the financing statement is therefore in the government balance a whole.