The German Social Security System
All the aspects about the topic
Social security is a core aspect of the German social system. When the constitution was created, it included a set of measures known as the Sozialgesetzbuch (social code).
These clauses set out the rights that Germans enjoy regarding statutory pensions, statutory accidents, long term care, and statutory unemployment. Employers will also need to make health insurance contributions.
Does Germany have social security?
The Sozialgesetzbuch isn't just a document. It's an important part of what being German means. Germans feel that vulnerable people in society should never be left behind, and the Sozialgesetzbuch exists to make sure that this doesn't happen.
The system provides a series of cash benefits to recipients when they are required. These benefits are funded by contributions from employers and employees, so that those with the most resources provide support for the less fortunate.
Can I claim benefits in Germany?
Social security isn't just provided for native Germans. In Germany, anyone who pays into the social security system can claim benefits if they are unemployed, sick, or suffer an accident.
Can you get benefits in Germany?
The German welfare system is progressive and fair. It means those who are out of work, retired or unable to work are entitled to benefits towards living costs, provided they have paid into the system.
How does Social Security work in Germany?
Social Security contributions are taken from the employee's salary, with a contribution from the employer as well. The contribution is calculated as a percentage of the wage, which means higher earners pay more.
How much is the pension in Germany?
The state pension in Germany is variable and will depend on the average wage earned during the time you have been paying social security payments. It is generally paid at about 50% of the wage.
When am I eligible for social security?
Each type of social security payment has different eligibility, but in all cases, you will have to make social security contributions for a minimum time period. Non-EU/EEA nationals will need to have settled status or a temporary residence permit.
How much is social security tax in Germany?
The full amount for all contributions, including healthcare, is around 20%. Those working in the country for a short time may be eligible for a German social security refund.
German social security rates 2019/2020 for an employee:
- Pension: 9.3%
- Unemployment: 1.25%
- Healthcare: 7.3%
- Long term care: 1.525%
The German social security employer contribution is the same amount again.