Employee Benefits in Germany, 2022 Update – Key Regulations, Statutory Public and Private Benefits, and Industry Analysis

The German social security system covers a large proportion of the population and plays a significant role in the country’s employee benefits market. Employees, self-employed persons, unemployed persons, persons taking care of children younger than three, persons doing community service, and voluntary care workers are all covered under the country’s social security system. The country’s welfare system includes a national pension plan, public health and nursing care, unemployment benefits, work injury insurance, and welfare aid.

The Germany employee benefits report provides insights into the wide range of employee benefits such as retirement benefits, long-term and short-term sickness benefits, and medical benefits as well as other state and private benefits offered by employers in Germany.

Key State and Compulsory Benefits in the Germany Employee Benefits Market

The key state and compulsory benefits offered by employers in Germany are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Retirement Benefits in the Germany Employee Benefits Market

The old-age pension makes sure that employees and their dependents can receive an assured amount of financial protection after their service with the company is over. Under this scheme, with the exclusion of civil servants, all individuals who are employed or are vocational trainees are compulsorily insured. The old-age pension provides the employees with lifetime protection against the financial risks caused by decreased earning capacity, old age, and death. It applies to both disabled people working at protected workshops and people in military or civil service. Some self-employed people are also compulsorily insured.

Short-Term Sickness Benefits in the Germany Employee Benefits Market

The short-term sickness benefit is a compulsory social insurance scheme. In Germany, employees are entitled to sickness benefits if they are unable to work for a short period due to sickness. In such a situation the employer will continue to pay a salary to the employee irrespective of their working hours. The continuation of payment of salary is only done in situations where the employee and employer relation had lasted for four weeks without interruptions.

Medical Benefits in the Germany Employee Benefits Market

In Germany, most people are covered under statutory medical insurance. The German medical insurance scheme is managed by several sickness funds which provide medical benefits, hospital care, and care benefits.

Workers’ Compensation Insurance in the Germany Employee Benefits Market

Workmen’s compensation insurance is provided to employees in case an accident results in disability or death during work and while commuting to and from the workplace. Workmen’s compensation also covers more than 70 diseases that are considered occupational diseases.

Key Private Benefits in the Germany Employee Benefits Market

The key private benefits offered by employers in Germany are retirement benefits, death benefits, disability benefits, medical benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits in the Germany Employee Benefits Market

In addition to the mandatory contributions to the statutory pension scheme, most employers in Germany contribute to supplementary Occupation Pension plans. These are collective agreements, where the benefits offered are based on negotiated terms between employers and employee labor unions.

Medical Benefits in the Germany Employee Benefits Market

Employers provide Company Health Insurance (betrieblicheKrankenversicherung – bKV) in the form of group insurance purchased from private insurers. While small and medium-sized companies purchase one common policy to cover all employees, large companies may provide different plans for different groups. The insurance provides benefits such as dentures, visual aids, alternative practitioners, preventive medicines, etc. not covered in the statutory health insurance system.

Accidental Death and Dismemberment Benefits in the Germany Employee Benefits Market

Many employers cover accidental death and dismemberment risk in Germany. These policies also provide cover for dependents. Most policies require a minimum of two or three employees to be insured. It provides 24 hours protection.

For more insights on the employee benefits market in Germany, download a free report sample

Market Report Overview

Scope

This report provides a detailed analysis of employee benefits in Germany –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment, grant-in-aid, social relief distress, compensation, leaves, and holidays and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Germany

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country
• Assess employee benefits of the market, including state and compulsory benefits and private benefits
• Gain insights into the key employee benefit schemes offered by private employers in the country
• Gain insights into key organizations governing the employee benefits market, and their impact on companies