The document summarizes Germany's social insurance system, including its history and present situation. It discusses the five main parts of social insurance - health, nursing care, unemployment, pension, and accident insurance. It provides details on contribution rates, benefits provided, and how the system is financed. The document also briefly compares social insurance systems in other countries and considers future prospects for Germany's system.

1. Social Insurance System
in Germany

2. Agenda
Conclusion
History
Future Prospects
3
5
1
2
Benefits
Financing
4
2
6
Other Countries

3. History
3
1883 Introduction of health insurance
1884 Introduction of accident insurance
1889 Introduction of pension insurance
1927 Introduction of unemployment insurance
1995 Introduction of nursing care insurance
1871 Foundation of Germany
1918 Foundation of Weimar Republic
1933 Hitler‘s rise to power
1949 Divison of Germany
1990 Reunification of Germany

4. Present Situation
• Obligation to obtain insurance
• Five parts of social insurance
• Solidarity Principle (Paying ≠ Receiving)
• Contribution rate depends on income
• Contribution rates are paid partly by employer
and employee Exc: Mini-Job
4
Nursing Care
Accident
Unemployment
Pension
Health

5. Agenda
Conclusion
History
Future Prospects
3
5
1
5
Benefits
Financing
4
2
6
Other Countries

6. Unemployment Insurance
• Compulsary for all employees except self-
employed people
• 2006: 6,5% 2017: 3% of brut salary
6
Insurance that provides financial support for job-seeking
people

7. Health Insurance
• Choice between public and private health
insurance
• Private insurance rates are based on age, health
situation and sex
• Since 2015: 50/50 employer/employee
constantly 14%
7
Insurance that finances the treatment of illnesses and
provides financial support during pregnancies

8. Pension Insurance
• Assessment system
• 2016: 86 billion € of governmental grant
• 6200 € monthly salary as counting limit
• 1891: 1,7% 2017: 18,7% 2030: 22%
8
Insurance that provides financial support for people in
pension, early pension and possible widowers or orphans

9. Nursing Care Insurance
• Only insurance that distinguishes between
insurants with and without children
• 4350€ monthly salary as counting limit
• 1995: 1% 2017: 2,35% of brut salary
9
Insurance that finances home care or a stay in an old
people‘s home in case of dependecy care

10. Accident Insurance
• Insurance has to be paid fully by employer
• Contribution rate depends on the sum of paid
salary and the danger index of the company
e.g. University 1,5
Football Club 57,8
10
Insurance that finances measurements to prevent accidents
and pay compensation in case of an accident

11. Contribution Rates
Health Insurance 14,6% (7,3% each)
Nursing Care Insurance 2,55% / 2,8% (childless) (1,275%/
1,4% each)
Pension Insurance 18,7% (9,35% each)
Unemployment Insurance 3% (1,5% each)
Accident Insurance only employer pays to respective
insurance company (rate varies by danger index)
39,1% / 19,45%
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12. Sample Calculation
Brut Salary 3000€
Health Insurance 438€  219,00€
Nursing Care Insurance 74,60€  37,30€
Pension Insurance 561€  280,50€
Unemplyoment Insurance 90€  45,00€
581,80€
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13. Sample Calculation
2418,20€
[Man,single,no children,catholic]
 Income Tax 433,00€
 Solidarity Supplement 23,81€
 Church Tax 38,97€
495,78€
N Net Salary: 1922,42€
13

14. Agenda
Conclusion
Developement
Future Prospects
3
5
1
14
Benefits
Financing
4
2
6
Other Countries

15. Unemplyoment
Unemployment Benefit I
• 60% of last net salary
• 67% in case of at having at least one child that
receives child benefit
• Payable only after at least 12 months of
employment
• Payable max. 12 months
Exc: employees older than 50  24 months
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16. Unemplyoment
Unemployment Benefit II
• Everyone older than 15, unemployed, and
without other governmental benefits is eligible to
apply
• 409€ per Person + rent + health insurance
• Obligation to visit job centre and to participate in
job finding measurements
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17. Health
• Full or partly payment for medical treatment
• Less to no payment in case of alternative
treatments such as homeopathy or
osteopathy
• No payment in case of treatment for
optical reasons such as teeth-
whitening or eye laser treatment
17

18. Pension
• Payout depends on In-Payment
• 2015: 1176€ average pension ♂
• Age for full pension: 67 (everyone born after
1964), 66 for people born in 1958
• Theoretically possible from 63 on: 3,6% less
payout per year
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19. Nursing Care
19
• Five different “need of care“ degrees
• Maximum of 901€ per month
• Equals at least 300 minutes of daily care
• Individual choice if nursing care is
done at home or at an elderly‘s home

20. Agenda
Conclusion
Developement
Future Prospects
3
5
1
20
Benefits
Financing
4
2
6
Other Countries

21. Taxes and Duties in Europe
Income Tax Social Insurance
21
Source: OECD
Germany
Italy
France
Sweden
Poland
USA
UK
Switzerland

22. Specialties in other countries
France: Tax on Alcohol Mix drinks
and advertisment for medicaments
co-finances health insurance
Poland: If a male person retires with 65 instead
of 67 he will have a 50% lower pension
Latvia: 87% of net salary in the first month of
unemployment (highest in the world)
22

23. Agenda
Conclusion
Developement
Future Prospects
3
5
1
23
Benefits
Financing
4
2
6
Other Countries

24. Future Prospects
Financing
• Raise of pension contribution rate
Benefiting
• Prolongating unemployment benefit I
• Raise of retirement age to at least 70
• Unconditional Basic Income
24

25. Agenda
Conclusion
Developement
Future Prospects
3
5
1
25
Benefits
Financing
4
2
6
Other Countries

26. Conclusion
• Germany is the country with the highest social security
contributions worldwide
• Demographic change will worsen the situation
• Unemployment Money II enables to survive but
not to live, same applies to many people receiving
pension, especially women
• The system in general provides to less financial support
considering the inpayments
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27. Thank you for
you attention!
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28. Sources
• Bpb (2012): Wirtschaft-Ökonomische Grundbegriffe, Bonn:bpb
• Jäger, Horst (2013): Einführung in die Sozialversicherung und in die sonstigen
Bereiche des Sozialrechts, Berlin: Schmidt
• Berliner Zeitung (2017):VERGLEICH - Andere Länder, andere
Sozialversicherungssysteme in: http://www.berliner-zeitung.de/15721812 (as of
17.03.2017)
• BpB (2009): Das deutsche Sozialversicherungssystem in:
https://www.bpb.de/politik/grundfragen/24-
deutschland/40478/sozialversicherungssystem (as of 25.02.2017)
• European Commission (2013): Your social security rights in Germany, in:
http://ec.europa.eu/employment_social/empl_portal/SSRinEU/Your%20social%20
security%20rights%20in%20Germany_en.pdf (as of 24.02.2017)
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29. Sources
• Kaiser, Tobias (2014): Deutschland ist bei Abgabenlast absolute
Weltspitze in:
https://www.welt.de/wirtschaft/article126829990/Deutschland-ist-bei-
Abgabenlast-absolute-Weltspitze.html (as of 04.03.2017)
• N.N. (2016): Social Security System in Germany in:
https://www.internations.org/germany-expats/guide/15984-social-
security-taxation/social-security-in-germany-15970 (as of 08.03.2017)
• N.N. (2015): Das deutsche Sozialversicherungssystem in:
https://www.justlanded.com/deutsch/Deutschland/Landesfuehrer/Jobs/S
ozialversicherung (as of 16.03.2017)
• The Telegraph (2013): Benefits in Europe – Country by Country in:
http://www.telegraph.co.uk/news/worldnews/europe/10391238/Benefits
-in-Europe-country-by-country.html (as of 22.02.2017)
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