Germany Statutory and Private Employee Benefits, 2023 Update

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Germany Statutory and Private Employee Benefits Report Overview

The Germany insurance has a well-developed social security system. Both companies and employees equally contribute to social security schemes. Employees must primarily contribute to nine statutory social security organizations: the statutory health insurance fund, the statutory long-term care insurance fund, the statutory short-term sickness fund, the statutory long-term disability fund, the statutory pension insurance fund, statutory accident insurance, statutory maternity, and paternity fund, statutory family benefits, and the statutory unemployment insurance fund.

Employers deduct tax and social security contributions from the gross wages of employees and directly transfer them to the tax office. For all the components of social security, there is a common fund. However, employees have the option to individually choose a health insurer in Germany. The increasing share of elderly people in the population, coupled with a relatively low birth rate, has forced the government to adopt several reforms to ensure a better social welfare system for future generations.

The Germany employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in Germany, including an overview of the state and compulsory benefits in Germany, detailed information about the private benefits in the country, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Germany.

Key Regulations The Pension Reform Act of 1989, The Health Insurance Reform Act, 1988, Federal Child Benefit Act of 1964, Federal Act on Parental Allowance and Parental Leave, 2006, Unemployment Insurance, and Social assistance benefits for jobseeker
Key State and Compulsory Benefits 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
Key Private Benefits Retirement Benefits, Death Benefits, Medical Benefits, Disability Benefits, Accidental Death and Dismemberment Benefits, and Other Benefits

Regulations Guiding Employee Benefits Market in Germany

Some of the key regulations guiding the employee benefits market in Germany are The Pension Reform Act of 1989, The Health Insurance Reform Act, 1988, Federal Child Benefit Act of 1964, Federal Act on Parental Allowance and Parental Leave, 2006, Unemployment Insurance, and Social assistance benefits for jobseeker.

Germany Employee Benefits Market Segmentation by State and Compulsory Benefits

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.

Workers’ Compensation Insurance: 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 73 diseases that are considered occupational diseases.

Short-Term Sickness Benefits: 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.

Germany Employee Benefits Market Segmentation by Private Benefits

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

Death Benefits: The Occupational Pension schemes and mandatory workers’ compensation insurance provide survivor benefits in Germany. Employees purchase a personal insurance policy to cover their unmet needs. Insured members receive a one-time lump sum payment or a monthly pension. The amount of benefit they receive is contingent on the length of service and their income when they were gainfully employed.

Medical Benefits: 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.

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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 benefits, Long-term care benefits, leaves and holidays, and private benefits.
  • It highlights the economic and regulatory situations relating to employee benefits in Germany.

Key Highlights

• German Labor Laws are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.

• In Germany, employers provide voluntary retirement benefits to their employees through Direct pension commitment, Direct insurance, Pensionskasse, and provident funds.

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.

Table of Contents

  • 1. Executive Summary
  • 2. Introduction
  • 2.1 What is this Report about?
  • 2.2 Definitions
  • 3. Country Statistics
  • 4. Overview of Employee Benefits in Germany
  • 5. Regulations
  • 6. State and Compulsory Benefits
  • 6.1 Retirement Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.2 Death in Service
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.3 Long-Term Disability Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.4 Short-Term Sickness Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.5 Medical Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.6 Workers’ Compensation Insurance
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.7 Maternity and Paternity Benefits
  • – Introduction
  • – Eligibility
  • – Benefits
  • – Payment options
  • – Contribution

  • 6.8 Other Benefits
  • – Unemployment benefits
  • – Family benefits
  • – Long-term care benefits
  • – Minimum resources benefits
  • – Leave and holidays

  • 7. Private Benefits
  • 7.1 Retirement Benefits
  • 7.2 Death Benefits
  • 7.3 Disability Benefits
  • 7.4 Medical Benefits
  • 7.5 Accidental Death and Dismemberment Benefits
  • 7.6 Other Benefits
  • 8. About GlobalData
  • 9. Contact Us

Table

Table 1: Insurance Industry Definition

Table 2: Germany – Country Statistics, 2022

Table 3: Germany – Retirement Benefits Employee and Employer Contributions 2023

Table 4: Germany − Medical Benefits Employee and Employer Contributions 2023

Table 5: Germany – Unemployment Benefits Entitlement Period

Table 6: Germany – Unemployment Benefits II, Monthly Amount 2023

Table 7: Germany – Housing Benefits Income Requirements 2023

Table 8: Germany – Public Holidays 2023

Figures

List of Tables

Table 1: Insurance Industry Definitions

Table 2: Germany – Country Statistics

Table 3: German Retirement Benefits – Employee and Employer Contributions

Table 4: German Benefits provided in case of sickness of a child 2021

Table 5: German Medical Benefits – Employee and Employer Contributions 2021

Table 6: Germany – Housing Benefits Income Requirements 2021

Table 7: Germany – Unemployment Benefits Entitlement Period

Table 8: Germany – Unemployment Benefits II, Monthly Amount 2021

Table 9: Germany – Public Holidays 2021

Frequently asked questions

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