48th General Report
on the Implementation of the European Code of Social Security, as amended by the Additional Protocol (Article 74)
General Report
of the Government of the Federal Republic of Germany for the period from 1 July 2018 to 30 June 2019
Germany has ratified all parts of the Code as amended by the Additional Protocol.
Part I
The provisions of the agreement have mainly been implemented by the provisions of Germany's Social Code, in particular through
· the Third Book (SGB III) - employment promotion of 24 March 1997
· the Fifth Book (SGB V) - statutory health insurance of 20 December 1988
· the Sixth Book (SGB VI) - statutory pension insurance of 19 February 2002
· the Seventh Book (SGB VII) - statutory accident insurance of 7 August 1996, and
· Section X of the Income Tax Act - child benefit.
The provisions also apply to seafarers and fishers alike.
Part II
Medical care
Regarding Article 9 (or Articles 10 and 12 of ILO Convention No. 130, respectively)
A. Letter (a) is the basis.
B. With regard to the group of persons protected in accordance with Article 9 of ILO Convention No. 102 and Articles 10, 12 of ILO Convention No. 130, reference is made to the previous reports (last detailed report no. 40 and general reports nos. 41 to 47). Compared to the last report, the following legal changes occurred during the reporting period:
1. Income thresholds
In 2019, the general annual earnings threshold up to which workers and salaried employees must be insured under the statutory health insurance scheme is 60,750 euros (Section 6 (6) Social Code Fifth Book (SGB V). In 2019, the special annual earnings threshold for employees with private health insurance on 31 December 2002 amounts to 54,450 euros (Section 6 (7) of SGB V).
|
general annual earning threshold |
special annual earnings threshold |
||
|
50,850.-- euros |
euros |
45,900 |
euros |
|
52,200 |
euros |
47,250 |
euros |
|
53,550 |
euros |
48,600 |
euros |
|
54,900 |
euros |
49,500 |
euros |
|
56,250 |
euros |
50,850 |
euros |
|
57,600 |
euros |
52,200 |
euros |
|
59,400 |
euros |
53,100 |
euros |
|
60,750 |
euros |
54,450 |
euros |
In 2019, the earnings threshold up to which spouses and children of insured persons are co-insured as family members under Section 10 of SGB V if they do not have their own insurance coverage, are not exempt from insurance or self-employed on a full-time basis is 445 euros. In the case of marginal employment, the earnings threshold in the reporting period was 450 euros.
|
Total income threshold |
Income threshold for marginal employment |
||
|
375 |
euros |
400 |
euros |
|
385 |
euros |
450 |
euros |
|
395 |
euros |
450 |
euros |
|
405 |
euros |
450 |
euros |
|
415 |
euros |
450 |
euros |
|
425 |
euros |
450 |
euros |
|
435 |
euros |
450 |
euros |
|
445 |
euros |
450 |
euros |
2. An act to lessen the burden of premiums of insured persons in statutory health insurance (GKV-Versichertenentlastungsgesetz - GKV-VEG)
Statutory health insurance offers comprehensive health care for all insured citizens. Given the positive economic development in Germany, their ability to operate effectively and financial stability are secure. The number of members and income from premiums are developing positively. The health fund and a large part of the health insurance providers have been able to build up substantial reserves. There is thus the potential to lessen the burden of social insurance contributions on insured persons.
Against this background, in 2018 the following measures relevant to insured persons were adopted as part of of the GKV-Versichertenentlastungsgesetz:
· equal financing of health insurance premiums for employees and pensioners, including supplementary contributions for each individual fund,
· cutting in half the minimum contribution assessment base for health insurance contributions for the full-time self-employed,
· a package of measures to reduce contribution debts, in particular in the case of "unclarified passive" memberships from compulsory follow-up insurance, and
· regulations to reduce health insurance funds' unnecessary surpluses that exceed legal maximum limits for financial reserves.
· to increase the proportion of shares in the investment of the coverage capital for the old-age provisions of the health insurance funds and
· for providing access to statutory health insurance for temporary soldiers at the end of their service.
On Part III
Sickness benefit
The monthly benefit assessment ceiling (maximum limit) for the assessment of sickness benefit was 4,425 euros in 2018. In 2019, it is 4,537.50 euros.
(The changes are in the year and in the euro amounts).
On Part IV
Unemployment Benefits
For the year 2018, the contribution assessment ceiling, which is adjusted according to gross wage developments, was fixed at 6,500 euros per month for western Germany and at 5,800 euros per month for eastern Germany.
The income threshold for 2019 is 6700 euros (West) and 6150 euros (East).
On 1 January 2020, access to unemployment insurance will be made easier. The minimum insurance period of twelve months required for entitlement to unemployment benefit can in future be fulfilled within a period of 30 months (until 31 December 2019 within two years ). The new regulation is part of the Skills Development Opportunities Act (Qualifizierungschancengesetz) of 18.12.2018.
On Part V
Old-age Benefit
Changes that occurred during the reporting period
In the period under review the relevant values in the statutory pension insurance have changed as follows:
In the old Länder (West) the current pension value is
31.03 euros for the period from 01/07/2017 to 30/06/2018
32.03 euros for the period from 01/07/2018 to 30/06/2019
and in the new Länder (East) it is
29.69 euros for the period from 01/07/2017 to 30/06/2018
30.69 euros for the period from 01/07/2018 to 30/06/2019
In the old Länder (West), the contribution assessment ceiling is
|
General pension insurance |
Miners' pension insurance |
|
|
for calendar year 2017 for calendar year 2018 for calendar year 2019 |
76,200 euros 78,000 euros 80,400 euros |
94,200 euros 96,000 euros 98,400 euros |
and in the new Länder (East) it is
|
General pension insurance |
Miners' pension insurance |
|
|
for calendar year 2017 for calendar year 2018 for calendar year 2019 |
68,400 euros 69,600 euros 73,800 euros |
84,000 euros 85,800 euros 91,200 euros |
The total number of Riester contracts for supplementary pension plans amounted to around 16.6 million at the end of 2018, and the number of occupational pension entitlements of active employees (second pillar) at the end of 2017 was around 20.8 million.
On pension adjustments:
Pension adjustments are based on the development of wages. For the pension adjustment on 1 July 2018, the provisions of legislation to achieve the pension transition (Rentenüberleitungsabschlussgesetz), according to which the current pension value (East) is to be adjusted at least so that it reaches 95.8 percent of the West value, apply for the first time in the new Länder. However, if the adjustment formula produces a more favourable result, taking into account wage developments in the new Länder, this will be applied. This is the case in the year under review, as the current pension value (East), calculated on the basis of wage developments, is one cent higher.
The legislation to achieve the pension transition (Rentenüberleitungsabschlussgesetz) stipulates that the current pension value (East) is to reach 100 percent by 1 July 2024 at the latest, so that from then on a uniform current pension value will apply throughout Germany. However, if wage developments in the new Länder are more positive, this could be the case sooner.
Rising wages and a high level of employment continue to ensure a good financial situation for the statutory pension insurance scheme. Statutory pensions thus remains a solid foundation for old-age provision in Germany.
The relevant wage increase for the pension adjustment as of 1 July 2018 is 2.93 percent in the old Länder and 3.06 percent in the new Länder. It is based on the wage development reported by the Federal Statistical Office calculated according to the national accounts, although the impact of job opportunities with compensation for additional expenses ("one-euro jobs") is not taken into account. In addition, the development of insured persons' salaries subject to contributions is taken into account and is decisive for the income situation of the statutory pension insurance scheme.
In addition to wage development, the sustainability factor takes into account the development of the ratio of pensioners to contributors in the adjustment of pensions. This year, the sustainability factor had a positive effect of +0.29 percentage points on the pension adjustment. In addition to this, the factor of old-age provision expenses is used to transfer the changes in the expenses of employees in setting up their old-age provision to the adjustment of pensions. However, since the contribution rate in the general pension insurance scheme did not change in 2017 and the so-called Riester reform scale (Riester-Treppe) was applied for the last time in 2013, the pension expenses factor had no effect on the pension adjustment this year.
On the basis of this data, there was an increase in the current pension value as of 1 July 2016 from 31.03 euros to 32.03 euros, or an increase in the current retirement value (East) from 29.69 euros to 30.69 euros, respectively. This corresponds to a pension adjustment of 3.22 per cent in the old Länder and of 3.37 per cent in the new Länder.
With regard to the development of the cost of living and wages and pensions, there were the following changes in Germany between 2017 and 2018:
Change compared to previous year in percent 2018
Consumer prices 1.76
Wages 2.87
Pension value on 1.7 (old Länder) 3.22
The developments shown in the table indicate that pension adjustments in 2018, at 3.22 percent in the old Länder, were higher than developments in prices and lower than developments in wages.
On Part VI
Employment Injury Benefit
The following changes occurred during the period under review:
Adjustment of the nursing care allowance
For the period starting 1 July 2018, nursing care allowances range from 362 euros to 1,445 euros per month in western Germany and from 341 euros to 1,369 euros per month in eastern Germany.
Pension adjustment
As from 1 July 2018, injury pensions from the statutory accident insurance were adjusted by a factor of 1.0322 in western Germany and 1.0337 in eastern Germany, which is an increase of 1.90 per cent and 3.59 per cent respectively.
The following changes occurred during the period under review:
Adjustment of the nursing care allowance
As from 1 July 2018, nursing care allowances range from 362 euros to 1,445 euros per month in western Germany and from 341 euros to 1,369 euros per month in eastern Germany.
Pension adjustment
As from 1 July 2018, injury pensions from the statutory accident insurance were adjusted by a factor of 1.0322 (West) and 1.0337 (East), i.e. by 3.22 % and 3.37 % respectively.
On Part VII
Family Benefits
Since 1 January 2018, child benefit has been 194 euros per month for first and second children, 198 euros per month for third children (200 euros) and 223 euros per month (225 euros) for fourth and subsequent children.
There were no changes in the family benefits of the social child benefit, the parental allowance and the child supplement subject to the social security regulation in the period under review. However, the child supplement was given a new form in an initial phase on 1 July 2019. The second phase will enter into force on 1 January 2020. In addition, the federal government is currently preparing the reform of the Federal Parental Allowances and Parental Leave Act (Bundeselterngeld- und Elternzeitgesetz).
On Part VIII
Maternity Benefits
The maternity benefit and maternity benefit supplement are paid during the 6 weeks before the expected day of delivery, for the day of delivery and for the first 8 weeks after delivery (12 weeks in the event of multiple births and premature births and in cases where a disability within the meaning of Section 2 (1) 1 of Book IX (SGB) has been medically diagnosed in the child and an application in accordance with Section 3 (2) 4 of the Maternity Protection Act (Mutterschutzgesetz) is submitted before the 8 week period after delivery has expired). The regulations remain otherwise unchanged.
On Part IX
Invalidity Benefit
Legislation on benefit improvement and stabilisation in the statutory pension insurance scheme (RV-Leistungsverbesserungs- und -Stabilisierungsgesetz) of 28 November 2018 further improved coverage for people with reduced earning capacity in the statutory pension insurance.
In 2019, the so-called allocation period, according to which the pensions due to reduced earning capacity are calculated as if the insured had continued to work as before after the reduced earning capacity period began, was extended for future pensions in one step from 62 years and three months to the age of 65 years and eight months. In addition, the act stipulates that, from 2020 on, the end of the allocation period will gradually be reached at the age of 67 in line with the increase in the standard age limit. This means a targeted and substantial increase in entitlements for new pensioners.
On Part X
Survivors' Benefit
Compared to the previous year, there are no innovations or emerging new developments regarding the statutory regulations on benefits for surviving dependants.
On Part XII
Common provisions
No changes in the period under review.