The unemployment benefit I in Germany is also known as the unemployment insurance. The insurance is administered by the Bundesagentur für Arbeit (Federal Employment Agency, BA) and funded by employee and employer contributions. This in stark contrast to FUTA in the US and other systems; where only employers make contributions. Participation (and thus contributions) are generally mandatory for both employee and employer. All workers with a regular employment contract, except freelancers and certain civil servants, contribute to the system. Since 2006, certain previously excluded workers have been able to opt into the system on a voluntary basis.
The system is financed by contributions from employees and employers. Employees pay 1.2% of their gross salary below the social security threshold and employers pay 1.2% contribution on top of the salary paid to the employee. The contribution level was reduced from 1.3% for employees and employers during the COVID-19 pandemic. Contributions are paid only on earnings up to the social security ceiling (2021: 7,100 EUR in western Germany and 6,700 EUR in the former GDR). The system is largely self-financed but also receives a subsidy from the state to run the Job centers.
Unemployed workers are entitled to:
Living allowance known as unemployment benefit
Help in finding work
Training
Unemployed benefit is paid to workers who have contributed at least during 12 months in a 30 month period preceding their loss of a job. The allowance is paid for 12 months to claimants below the age of 50. Above the age of 50 the allowance period climbs up to 24 months at the age of 58, provided the claimant has contributed for at least 48 months. Claimants get 60% of their previous net salary (capped at the social security ceiling), or 67% for claimants with children. The maximum benefit is therefore 2382,60 euros (in 2021).
Unemployment benefit II
If a worker is not eligible for the full unemployment benefits or after receiving the full unemployment benefit for the maximum of 12 months, he is able to apply for benefits from the so-called Hartz IV programme, an open-ended welfare programme. A person receiving Hartz IV benefits is paid 432 EUR (2020) a month for living expenses plus the cost of adequate housing (including heating) and health care. Couples can receive benefits for each partner including their children. Additionally, children can get "benefits for education and participation". Germany does not have an EBT (electronic benefits transfer) card system in place and, instead, disburses welfare in cash or via direct deposit onto the recipient's bank account.
Germany has a universal[9] multi-payer health care system with two main types of health insurance: "Statutory Health Insurance" (Gesetzliche Krankenversicherung) known as sickness funds (Krankenkasse) and "Private Health Insurance" (Private Krankenversicherung).[10][11][12]
Health insurance is compulsory for the whole population in Germany. Salaried workers and employees below the relatively high income threshold of more than 60,000 euros per year[13] are automatically enrolled into one of currently around 105[14] public non-profit "sickness funds" at common rates for all members, and is paid for with joint employer-employee contributions. Provider payment is negotiated in complex corporatist social bargaining among specified self-governed bodies (e.g. physicians' associations) at the level of federal states (Länder). The sickness funds are mandated to provide a unique and broad benefit package and cannot refuse membership or otherwise discriminate on an actuarial basis. Social welfare beneficiaries are also enrolled in statutory health insurance, and municipalities pay contributions on behalf of them.
Besides the "Statutory Health Insurance" (Gesetzliche Krankenversicherung) covering the vast majority of residents, the better off with a yearly income above almost €50,000 (US$57,110), students and civil servants for complementary coverage can opt for private health insurance (about 11% of the population). Most civil servants benefit from a tax-funded government employee benefit scheme covering a percentage of the costs, and cover the rest of the costs with a private insurance contract. Recently, private insurers provide various types of supplementary coverage as an add upon of the SHI benefit package (e.g. for glasses, coverage abroad and additional dental care or more sophisticated dentures).
The health economics of Germany sector was about US$368.78 billion (€287.3 billion) in 2010, equivalent to 11.6 percent of gross domestic product (GDP) this year and about US$4,505 (€3,510) per capita.[15] According to the World Health Organization, Germany's health care system was 77% government-funded and 23% privately funded as of 2004.[16] In 2004 Germany ranked thirtieth in the world in life expectancy (78 years for men). It had a very low infant mortality rate (4.7 per 1,000 live births), and it was tied for eighth place in the number of practicing physicians, at 3.3 per 1,000 persons. In 2001 total spending on health amounted to 10.8 percent of gross domestic product.[17]
The child care system in Germany can be seen as universal in coverage, though regulations may vary from Land to Land, and between west Germany and east Germany. It is viewed as a public problem shared by multiple roles of the society: parents, regional and local governments, non-profit organizations (usually churches) etc. Germany offers a wide range of child care programs for parents: day care centers (Krippe) for children up to age 3, preschool programs (Kindergarten) for children from age 3 to 6, primary schools (Hort) for school-age children. Around ninety-eight per cent of German daycare is non-for-profit and is heavily funded by the government. Ninety per cent of the costs are paid by state, regional and local governments through public taxes while the rest of the cost is paid by the parents.[18] In western Germany, regulations of day care are enforced by state youth office (Landesjugendamt) in each Land, which distributes funds to day care centers according to a certain amount. Even though the enforcement is in a relatively decentralized form, there is still high conformity on regulatory requirements of the day care centers among different Land. For example, child/staff ratios vary from 17/1 to 25/1; group sizes of 25 in kindergartens; and training requirements for teachers. German child care system values highly of the quality of teaching staffs. In every German Land, a teacher must complete four to five years of training requirements, usually composed of one to two years of praktikum, two years of college, and one year of additional praktikum (Berufspraktikum).[19] The tougher regulation on teachers' training requirements ensures the quality of child care service to some extent. There is no big market for private day care in Germany. Only 4% to 10% of mothers employ child minders (Tagespflege) in 1995.[20] The main reason for this is that private child care providers cannot maintain profitability when facing the competition from the public providers which are generously funded by the government. And the high barrier to enter the market set by the government becomes one of the hinders.
Although general condition of the child care system can be applied to most of the cases and regions in Germany, there are noticeably big regional differences, especially between west and east Germany. The regional variations in child care supply reflect the fact that regulations are being made at the local community level. According to Tietze, Rossbach & Roitsch survey in 1994, there are variations in the supply of day care services between rural and urban areas, with rural areas being at a disadvantage. In east Germany, there are much larger number of day care slots than in west Germany and higher rate of child care provision, as an inheritance from its former socialist German Democratic Republic. The opening hours of the day-care centers vary as well. In west Germany the opening hours of Kindergarten are short, only for half of the day; while in east Germany 97% of the kindergarten offers all-day care including lunch.[21][22] Child care policies in Germany focus more on children's development and equal opportunities to succeed after kindergarten rather than focusing on helping to solve the compatibility of work and family for parents. Thus it explains the fact that Germany aims to provide high-quality early education for children but set the opening hours of day care centers to be short and not convenient to the working parents.[23]
In many social studies, child care policy together with social norms about gender roles have cast big impact on women's participation in labor force and fertility choice. Having one of the lowest fertility rate among European countries, Germany has on average 1.38 children per woman in 2008 and it keeps on having high level of childlessness among parents. Women in Germany, as in many other countries, face the dilemma between work and family.[24] In west Germany, female participation in labor market is low as German income tax system discourages women from labor market due to high unemployment rate. Even for women who have jobs, they usually stop working at the birth of the child because mothers are seen as the best child care providers. 3-year period of parental leave is provided by the government, with low cash benefits paid under the terms of health insurance. Women tend to stay as housewives when kids are young and return to part-time works after their children grow older. Full-time employment rates are even lower.[25] In east Germany, however, it witnesses one of the highest female labor participation rate among European countries. As high as 85 per cent of adult women, including those with young kids, participate in labor market. For working mothers, there are several informal child care arrangements they could have. Usually they have their children to be cared for by grandparents or other close relatives. Others send their kids to day care centers. 60% of east German children under age 3 are cared for by the day centers and over 90% of children aged 3 to 6 attend full-day preschool program.[26]
Apart from maternity leave, parents are also entitled to a paid leave if their children are ill at home.
Funding
The social security system in Germany is funded through contributions paid by employees and employers. The contributions are paid on all direct wages as well as indirect wages up to a ceiling.
↑ Bump, Jesse B. (October 19, 2010). "The long road to universal health coverage. A century of lessons for development strategy"(PDF). Seattle: PATH. Retrieved March 10, 2013. Carrin and James have identified 1988—105 years after Bismarck’s first sickness fund laws—as the date Germany achieved universal health coverage through this series of extensions to growing benefit packages and expansions of the enrolled population. Bärnighausen and Sauerborn have quantified this long-term progressive increase in the proportion of the German population covered mainly by public and to a smaller extent by private insurance. Their graph is reproduced below as Figure 1: German Population Enrolled in Health Insurance (%) 1885–1995. Carrin, Guy; James, Chris (January 2005). "Social health insurance: Key factors affecting the transition towards universal coverage"(PDF). International Social Security Review. 58 (1): 45–64. doi:10.1111/j.1468-246X.2005.00209.x. Retrieved March 10, 2013. Initially the health insurance law of 1883 covered blue-collar workers in selected industries, craftspeople and other selected professionals.6 It is estimated that this law brought health insurance coverage up from 5 to 10 per cent of the total population. Bärnighausen, Till; Sauerborn, Rainer; Rainer (May 2002). "One hundred and eighteen years of the German health insurance system: are there any lessons for middle- and low income countries?"(PDF). Social Science & Medicine. 54 (10): 1559–1587. doi:10.1016/S0277-9536(01)00137-X. PMID12061488. Retrieved March 10, 2013. As Germany has the world’s oldest SHI [social health insurance] system, it naturally lends itself to historical analyses.
↑ A. J. W. Goldschmidt: Der 'Markt' Gesundheitswesen. In: M. Beck, A. J. W. Goldschmidt, A. Greulich, M. Kalbitzer, R. Schmidt, G. Thiele (Hrsg.): Management Handbuch DRGs, Hüthig / Economica, Heidelberg, 1. Auflage 2003 ( ISBN3-87081-300-8): S. C3720/1-24, with 3 revisions / additional deliveries until 2012
↑ Baker, Maureen (1995). "Child care delivery and support". In BAKER, MAUREEN (ed.). Canadian Family Policies. Cross-National Comparisons. University of Toronto Press. pp.189–235. ISBN9780802077868. JSTOR10.3138/9781442672178.10.
↑ Gormley, William T.; Peters, B. Guy (1992). "National Styles of Regulation: Child Care in Three Countries". Policy Sciences. 25 (4): 381–399. doi:10.1007/bf00138020. JSTOR4532269.
↑ Kreyenfeld, Michaela; Hank, Karsten (2000). "Does the Availability of Child Care Influence the Employment of Mothers? Findings from Western Germany". Population Research and Policy Review. 19 (4): 317–337. doi:10.1023/a:1026556309080. JSTOR40230275.
↑ Kreyenfeld, Michaela; Hank, Karsten (2000). "Does the Availability of Child Care Influence the Employment of Mothers? Findings from Western Germany". Population Research and Policy Review. 19 (4): 317–337. doi:10.1023/a:1026556309080. JSTOR40230275.
↑ Ondrich, Jan; Spiess, C. Katharina (1998). "Care of Children in a Low Fertility Setting: Transitions between Home and Market Care for Pre-School Children in Germany". Population Studies. 52 (1): 35–48. doi:10.1080/0032472031000150166. JSTOR2584762.
↑ Kamerman, Sheila B.; Kahn, Alfred J. (1979). "Comparative analysis in family policy: a case study". Social Work. 24 (6): 506–512. doi:10.1093/sw/24.6.506. JSTOR23713548.
The Social Security Act of 1935 is a law enacted by the 74th United States Congress and signed into law by US President Franklin D. Roosevelt. The law created the Social Security program as well as insurance against unemployment. The law was part of Roosevelt's New Deal domestic program.
National Insurance (NI) is a fundamental component of the welfare state in the United Kingdom. It acts as a form of social security, since payment of NI contributions establishes entitlement to certain state benefits for workers and their families.
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a compulsory governmental insurance system, not taxes on individual citizens. Depending on the jurisdiction and the status of the person, those sums may be small, covering only basic needs, or may compensate the lost time proportionally to the previous earned salary.
Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee's wages, and taxes paid by the employer based on the employee's wages.
Health insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance is risk among many individuals. By estimating the overall risk of health risk and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the money to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization, such as a government agency, private business, or not-for-profit entity.
The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans.
The Federal Employees Health Benefits (FEHB) Program is a system of "managed competition" through which employee health benefits are provided to civilian government employees and annuitants of the United States government. The government contributes 72% of the weighted average premium of all plans, not to exceed 75% of the premium for any one plan.
Employee benefits and benefits in kind include various types of non-wage compensation provided to employees in addition to their normal wages or salaries. Instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a "salary packaging" or "salary exchange" arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing furnished or not, with or without free utilities; group insurance ; disability income protection; retirement benefits; daycare; tuition reimbursement; sick leave; vacation ; social security; profit sharing; employer student loan contributions; conveyancing; long service leave; domestic help (servants); and other specialized benefits.
Social welfare, assistance for the ill or otherwise disabled and the old, has long been provided in Japan by both the government and private companies. Beginning in the 1920s, the Japanese government enacted a series of welfare programs, based mainly on European models, to provide medical care and financial support. During the post-war period, a comprehensive system of social security was gradually established.
National health insurance (NHI), sometimes called statutory health insurance (SHI), is a system of health insurance that insures a national population against the costs of health care. It may be administered by the public sector, the private sector, or a combination of both. Funding mechanisms vary with the particular program and country. National or statutory health insurance does not equate to government-run or government-financed health care, but is usually established by national legislation. In some countries, such as Australia's Medicare system, the UK's National Health Service and South Korea’s National Health Insurance Service, contributions to the system are made via general taxation and therefore are not optional even though use of the health system it finances is. In practice, most people paying for NHI will join it. Where an NHI involves a choice of multiple insurance funds, the rates of contributions may vary and the person has to choose which insurance fund to belong to.
The National Insurance Act 1911 created National Insurance, originally a system of health insurance for industrial workers in Great Britain based on contributions from employers, the government, and the workers themselves. It was one of the foundations of the modern welfare state. It also provided unemployment insurance for designated cyclical industries. It formed part of the wider social welfare reforms of the Liberal Governments of 1906–1915, led by Henry Campbell-Bannerman and H. H. Asquith. David Lloyd George, the Liberal Chancellor of the Exchequer, was the prime moving force behind its design, negotiations with doctors and other interest groups, and final passage, assisted by Home Secretary Winston Churchill.
Sick leave is paid time off from work that workers can use to stay home to address their health needs without losing pay. It differs from paid vacation time or time off work to deal with personal matters, because sick leave is intended for health-related purposes. Sick leave can include a mental health day and taking time away from work to go to a scheduled doctor's appointment. Some policies also allow paid sick time to be used to care for sick family members, or to address health and safety needs related to domestic violence or sexual assault. Menstrual leave is another type of time off work for a health-related reason, but it is not always paid.
Health insurance in the United States is any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance, or a social welfare program funded by the government. Synonyms for this usage include "health coverage", "health care coverage", and "health benefits". In a more technical sense, the term "health insurance" is used to describe any form of insurance providing protection against the costs of medical services. This usage includes both private insurance programs and social insurance programs such as Medicare, which pools resources and spreads the financial risk associated with major medical expenses across the entire population to protect everyone, as well as social welfare programs like Medicaid and the Children's Health Insurance Program, which both provide assistance to people who cannot afford health coverage.
Germany has a universal multi-payer health care system paid for by a combination of statutory health insurance and private health insurance.
Social security is divided by the French government into four branches: illness; old age/retirement; family; work accident; and occupational disease. From an institutional point of view, French social security is made up of diverse organismes. The system is divided into three main Regimes: the General Regime, the Farm Regime, and the Self-employed Regime. In addition there are numerous special regimes dating from prior to the creation of the state system in the mid-to-late 1940s.
German Statutory Accident Insurance or workers' compensation is among the oldest branches of German social insurance. Occupational accident insurance was established in Germany by statute in 1884. It is now a national, compulsory program that insures workers for injuries or illness incurred through their employment, or the commute to or from their employment. Wage earners, apprentices, family helpers and students including children in kindergarten are covered by this program. Almost all self-employed persons can voluntarily become insured. The German workers' compensation laws were the first of their kind.
Welfare in France includes all systems whose purpose is to protect people against the financial consequences of social risks.
Social security in Finland, or welfare in Finland, is very comprehensive compared to other countries. In the late 1980s, Finland had one of the world's most advanced welfare systems, one that guaranteed decent living conditions for all Finns. Since then social security has been cut back, but still the system is one of the most comprehensive in the world. Created almost entirely during the first three decades after World War II, the social security system was an outgrowth of the traditional Nordic belief that the state was not inherently hostile to the well-being of its citizens, but could intervene benevolently on their behalf. According to some social historians, the basis of this belief was a relatively benign history that had allowed the gradual emergence of a free and independent peasantry in the Nordic countries and had curtailed the dominance of the nobility and the subsequent formation of a powerful right wing. Finland's history has been harsher than the histories of the other Nordic countries, but not harsh enough to bar the country from following their path of social development.
Bituah Leumi, is Israel's national social security agency. It was established on 1 April 1954.
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