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The German social security system rests on five pillars and provides financial protection against the major risks in life and the consequences of them:
- statutory unemployment insurance ensures a minimum standard of living in the event of unemployment
- statutory pension insurance provides security for members in their old age and in the event of incapacity for work and, in the event of their death, security for their survivors
- statutory health insurance helps safeguard and restore health and alleviates the consequences of illness
- statutory accidence insurance restores capacity for work in the event of an accident (at work)
- statutory care insurance provides financial support for people reliant on permanent care
In Germany access to the social security system is via the health insurance funds. Full-time self-employed people have the choice between voluntary, statutory or private health insurance. In the case of blue-collar and white-collar workers the employer assumes responsibility for registration with the chosen health insurance fund. They are thus automatically registered for care insurance. The health insurance fund also assumes responsibility for registration for unemployment and pension insurance.
Social security in Germany is funded predominantly by contributions from employees and employers and in principle those contributions are paid in equal measure by both sides. The employer normally deducts the employee's contribution from his gross pay and transfers it to the various insurance funds on the employee's behalf. The employer pays his share directly to the insurance funds.
Text last edited on: 11/2006
Source: European Union
© European Communities, 1995-2007
Reproduction is authorised.
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