Parts of the Consolidated Report

Government department and official responsible for updates

Contact information

For all parts please refer to :

Federal Ministry of Labour and Social Affairs, Division VIb4.

e-mail : [email protected]

Please provide a reply to the question (RF for the ECSS):

Compliance with Article 6(a) of the ECSS, in conjunction with Part V:

Please state whether the voluntary insurance scheme [“Riester pensions”] or schemes concerned are:

(i)  subsidized or supervised by the public authorities; or

(ii)   administered in accordance with prescribed standards by joint operation of employers and workers.

Concerning (i):

"Riester pensions" serve to build up capital-based supplementary provisions for old-age. "Riester pensions" are state-subsidised on the basis of corresponding statutory provisions through allowances and, potentially, additional tax relief through a special expense deduction. The allowances are paid out by a central authority (Zentrale Zulagenstelle für Alternsvermögen - ZfA) to the providers (e.g. life insurance companies or investment companies), where they are allocated to the individual Riester plans. The Federal Government estimates that the subsidy level in 2021 will amount to around EUR 770 million. "Riester pensions" therefore represent a system of voluntary old-age provision products that are subsidised with public funds on the basis of statutory provisions.

In addition, the providers of Riester plans are subject to supervision by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). "Riester pensions" thus also represent a system of voluntary insurance supervised by public authorities.

Concerning (ii):

"Riester pensions" are by contrast not a system of voluntary insurance operated jointly by employers and workers.

Compliance with Article 6(b) of the ECSS, in conjunction with Part V:

1.       Please indicate the wage of the skilled manual male employee computed in accordance with the provisions of Article 65 (see Title I under Part V - 4. Level and calculation of benefit).

The provisional average earnings according to Annex 1 of SGB VI are based on the average earnings of all persons insured in the statutory pension insurance scheme. This was 40,551 euros for the year 2020. The wage of a skilled male manual worker within the meaning of Article 65 (6) (c) of the ECSS is therefore 125 per cent of this figure, 50,689 euros.

2.       Please furnish, in accordance with paragraph 1 (b) of Article 74, the following statistical information on the number of persons protected by voluntary insurance:

A.      Number of employees (or economically active persons) protected by the voluntary insurance scheme or schemes concerned, whose earnings do not exceed the wage of the skilled manual male employee computed in accordance with the provisions of Article 65.

                                       (i)      Scheme No. 1 [“Riester pensions”]

There is no data available on this. The data on the plans is from statistics provided by the insurance providers. They do not keep any data differentiated according to income.

                                     (ii)      Scheme No. 2 [Betriebliche Altersversorung]

There is no data available on this. The data on the plans is from statistics provided by the insurance providers. They do not keep any information differentiated by income.

                                   (iii)      Total

No figures for those in employment who fall under Scheme 1 and/or Scheme 2 are available. To estimate a prevalence rate, it is possible to use survey results of employees between 25 and 64 years of age who are insured in the statutory pension insurance scheme.

These surveys reveal that the cumulative prevalence rate of supplementary insurance contracts, i.e. Riester plans (Scheme 1) and/or occupational pension plans (Scheme 2), is 60 per cent among the employees with remuneration below the earnings of a male skilled worker. It should be noted that asking about earnings in personal surveys has its uncertainties. The share mentioned can thus only be taken as an approximate value.

B.      Total number of employees (or of economically active persons) protected by the voluntary insurance scheme or schemes concerned.

                                       (i)      Scheme No. 1 [“Riester pensions”]

There were 16.5 million Riester plans in 2019. This does not correspond to the number of persons, as one person can take out several Riester plans.

                                     (ii)      Scheme No. 2 [Betriebliche Altersversorgung]

There were 21.0 million active entitlements in 2019. This does not correspond to the number of persons, as one person can have several active entitlements..

                                   (iii)      Total

No exact figures for those in employment who fall under Scheme 1 and/or Scheme 2 are available. A survey of employees between the ages of 25 and 64 who are insured under the statutory pension insurance scheme indicates that the prevalence rate of subsidised supplementary pension provision (Riester plans (Scheme 1) or occupational pension plans (Scheme 2)) is 66 per cent.

C.       Number of persons insured whose earnings do not exceed the wage of the skilled manual male employee (A(iii)) per cent of the total number of persons insured (B(iii))

As explained before, no data on this is available.

Compliance with Article 6(c) of the ECSS, in conjunction with Part V:

Please indicate the compliance of the voluntary insurance scheme [“Riester pensions”] with the following provisions of Part V of the ECSS:

·         Article 26 of ECSS (Part V - 2. Contingency covered)

"Riester pensions" are based on a contract between the provider and the contracting party (old-age provision contract), which must meet certain requirements laid down by law. These requirements are laid down in the Retirement Provision Plans Certification Act (Gesetz über die Zertifizierung von Altersvorsorge- und Basisrentenverträgen --AltZertG). The fulfilment of these requirements is a prerequisite for the promotion of the plans.

Regarding Article 26 of the ECSS, the relevant provision is that the plan must provide for a lifelong retirement benefit calculated independently of gender, and which may not be disbursed before the age of 62 or the commencement of a benefit from a statutory old-age pension scheme before the age of 62 (Section 1 (1) 2 AltZertG). At the beginning of the disbursement phase, up to 30 per cent of the available capital can be paid out as a one-time payment to the contract partner outside of the monthly benefits (Section 1 (1) 4 (a) AltZertG).

For "Riester pensions" it is thus ensured that the contingeny covered is the reaching of an agreed age and that at least 70 percent of the capital saved is used for the lifelong monthly payments. Furthermore, it is possible for the contracting parties to agree on an age for payments to begin that it is not higher than 65 years; in this case, between 62 and 65 years.

·         Article 65(10) of ECSS (Part V - 5. Adjustment of benefit)

The statutory requirements for "Riester pensions" stipulate that the benefits must remain constant or increase throughout the payout phase (Section 1 (1)  4 (a) AltZertG).

Article 65 (10) of the ECSS stipulates that the amounts of current periodical payments at old age be reviewed following substantial changes in the general level of earnings resulting from substantial changes in the cost of living. Based on this, the committee has concluded that, according to Article 65 (10) of the ECSS, benefits provided under voluntary insurance schemes must be regularly adjusted in line with price and/or wage increases and must not be dependent on the surpluses that an insurance company has realised through investments.

The Federal Government points out first of all that the wording of Article 65 (10) of the ECSS only requires that the amounts of current periodical payments in old-age "be reviewed" following substantial changes in the general level of earnings resulting from substantial changes in the cost of living. Specific directions, however, as to whether and how the amount of the pensions is to be adjusted after such a review cannot be derived from the provision. Consequently, it can by no means be concluded from Article 65 (10) of the ECSS that private pension schemes in which the adjustment of current pensions does not follow a wage or price index but depends, for example, on regularly accruing surpluses are not eligible for consideration under Article 6 of the ECSS.

The Federal Government holds that an adjustment of benefits in line with price and/or wage increases is not practically feasible in funded private pension schemes such as the "Riester pensions" and accordingly not seen in practice. Given the nature of how they work, the benefits of such schemes can only be financed on the basis of the contributions paid in and the income generated from their investment.

Typically, in funded private pension schemes, adjustments are made according to an agreed upon nominal interest rate and/or depending on surpluses. Such adjustments may be higher or lower than price or wage increases. The Federal Government holds that if Article 65 (10) of the ECSS were to exclude such adjustment mechanisms, Article 6 of the ECSS would effectively have no meaning.

Concerning Article 65 (10) of the ECSS, it should also be noted that the "Riester pensions" are merely a supplementary pension scheme that has its place alongside the statutory pension insurance scheme, and only accounts for a small proportion of old-age pensions.

·         Article 29 of ECSS (Part V - 6. Qualifying period)

The benefits of "Riester pensions" do not depend on the fulfilment of any specific qualifying, contribution, employment or residence period.

·         Article 30 of ECSS (Part V -7. Duration of benefit)

As already noted under Article 26 of the ECSS, the statutory requirement stipulates that "Riester pensions" must provide for a lifelong retirement benefit.

·         Article 68 of ECSS (Part V - 10. Suspension of benefit)

There is no provision that makes the payment of benefits from "Riester pensions" dependent on residence in Germany's territory. So-called harmful use is deemed to exist, however, if the person entitled to the allowances transfers their domicile or habitual residence to a country that does not belong to the EU/EEA area during the payout phase (Section 95 of the Income Tax Act (Einkommenssteuergesetz)).

There are no provisions calling for a suspension of benefits from "Riester pensions" if the livelihood of the person concerned is covered by public funds or by a social security institution or service.

"Riester pension" payments are not reduced in connection with other social security cash benefits or third-party old-age benefits.

Riester pension providers can of course refuse to pay if an insured person or a third party tries to obtain a payment through fraud.

Article 68 (e) to (j) of the Code do not apply to old-age benefits.

·         Article 69 of ECSS (Part V - 9. Right of complaint and appeal)

The contractual partner can take legal action when a provider refuses to make "Riester pension" payments or if the type or amount is disputed.

There are also institutions for resolving disputes out of court, such as the insurance ombudsperson.

Report form for the ECSS:

The provisions of the agreement are implemented mainly by the provisions of the Social Code, and in particular by Book V of the Social Code (SGB V) - Statutory Health Insurance of 20 December 1988

1.       Please state to which of the subparagraphs a), b), or c) of Article 9 of the ECSS recourse is had and provide for statistical data depending on the chosen subparagraph:

Title I under Article 76 for Article 9(a) of the ECSS

A.    Number of employees protected[1]:

i) under general scheme …                                34.3 million compulsorily insured persons

ii) under special schemes (if any) …  5.9 million voluntarily statutorily insured persons 2021)

   iii) Total …                                                40.2 million statutorily insured persons. (April 2021)

B.    Total number of employees[2] …                   44.4 million (April 2021)

C.    Number of employees protected (A(iii)) per cent of total number of employees (B). Please state how these data are computed and give dates of reference.

89.5 percent of employees have statutory health insurance. According to the Federal Statistical Office, 44.4 million Germans were in employment in April 2021, and 40.2 had statutory health insurance according to official statistics.

Title II under Article 76 for Article 9(b) of the ECSS

A.      Number of economically active persons protected[3]:

i) under general scheme …                      30.1 million working compulsory members

ii) under special schemes (if any) …       4.4 million working voluntary members

   iii) Total …                                                 34.5 million (April 2021)

B.      Total number of residents[4]…                  83.2 million inhabitants (2020)

C.      Number of economically active persons protected (A(iii)) per cent of total number of residents (B).

D.      Please state how these data are computed and give dates of reference.

41.49 % - Working persons with statutory health insurance out of the total number of inhabitants (April 2021)

Title III under Article 76 for Article 9(c) of the ECSS

A.     Number of residents protected[5]               83.1 million

B.     Total number of residents[6]                        83.2 million

C.      Number of residents protected (A) per cent of total number of residents (B) 99,93 %

2.       Please confirm that the dependent wives and children of the persons protected (classes of employees or of the economically active population) are also entitled to the medical benefits stipulated in Article 10 of ECSS, in accordance with the provisions of this Article. Please state, wherever possible, the number of dependent wives and children protected.

Children, spouses and registered partners of members of the statutory health insurance scheme (GKV) are covered by non-contributory family insurance if they have their residence or habitual abode in Germany and have a total income that does not regularly exceed a certain income limit (in 2021: 470 euros per month). A prerequisite for family insurance is also that the relatives are not otherwise subject to compulsory insurance, voluntarily insured, exempt from compulsory insurance or self-employed as their main occupation.

The non-contributory co-insurance of family members is an essential element of social equalisation that characterises the GKV system. It is an exception to the principle that an insured person has an obligation to contribute themselves. To keep the community of solidarity from being overburdened financially, the non-contributory family insurance only provides support when the dependents have no income of their own or only a low income. Dependents with income of their own above the statutory limit can be expected to pay their own contributions.

Family insurance for children generally ends when they reach the age of 18, or for non-working children when they reach the age of 23. If the child is completing school or vocational training or is doing voluntary service, family insurance ends when the child reaches the age of 25.

In 2021, 16.0 million people were insured under the non-contributory family insurance scheme.

Report form for the ECSS:

Please state in detail the nature of the benefits provided, with reference to paragraph 1 of Article 10 of the ECSS, as amended by its Protocol.  

No changes compared to the text of the 45th report:

Persons insured in the statutory health insurance are entitled to treatment during sickness in accordance with sections 27 to 43c of Book V of the Social Code if such treatment is necessary to identify a disease, to cure it, to prevent its aggravation or to alleviate disease-related pain and suffering. Treatment during sickness includes:

1.            medical treatment including psychotherapy as medical and psychotherapeutical treatment,

2.            dental treatment including the provision of dentures,

3.            provision of medicines, dressings, therapeutic remedies and aids,

4.            domestic nursing care and home help,

5.            hospital treatment,

6.            medical and supplementary rehabilitation benefits as well as tolerance testing and work therapy.

In the event of pregnancy and maternity, they are entitled to the following benefits under sections 24c to 24i of Book V of the Social Code (Sozialgesetzbuch V):

1.            medical care and midwife assistance,

2.            provision of medicines, dressings, therapeutic remedies and aids,

3.            outpatient or inpatient delivery,

4.            provision of care at home

5.            home help,

6.            maternity benefits.

Report form for the ECSS:

1.       If recourse is had to paragraph 2 (a), Article 10 of ECSS please indicate, for each type of benefit enumerated in paragraph 1 (a), Article 10 of ECSS, the extent to which the patient or the breadwinner is required to share in the cost of the medical care received. Please state what measures are taken to ensure that cost-sharing does not involve hardship.

2.       If recourse is had to paragraph 2 (b), Article 10 of ECSS, please indicate, for pharmaceutical supplies, the extent to which the patient or the breadwinner is required to share in the cost. 

3.       Please confirm that, in accordance with paragraph 2 (b), Article 10 of ECSS, cost-sharing is not required in the case of pregnancy and confinement and their consequences, except for pharmaceutical supplies. If the scheme provides for the reimbursement of the expenses which the beneficiary or her breadwinner was obliged to incur in order to obtain the benefits stipulated in paragraph 1 (b)(i)(ii), Article 10, please furnish any available information to show that the beneficiary or her breadwinner does not share in the cost of such benefits.

4.       If the scheme provides for cost-sharing in the form of a fixed sum in respect of each case or course of treatment or each prescription of pharmaceutical supplies, please indicate the total of such payments made by all persons protected in respect of any one of the types of care referred to in sub-paragraphs (a) or (b) of paragraph 2, and the total cost of that type of care.

No changes compared to the text of the 45th report:

The provisions on cost sharing (co-payments by insured persons) are stipulated in sections 31 (3), 32 (2), 33 (2), 37 (5), 38 (5), 39 (4), 40 (6), 41 (3) and 60 (2) of Book V of the Social Code.

As a rule, co-payments amount to 10 percent of the pharmacy retail price, but at least to 5 euros and at most to 10 euros. No insured person is required to pay more than the costs of the relevant cure, however.

Special co-payment rules apply to in-patient care (in-patient prevention and rehabilitation benefits and services as well as hospital treatment including follow-up rehabilitation) and to therapeutic medical aids, to domestic nursing care and travel expenses. 

For in-patient treatment, insured persons are required to make a co-payment of 10 euros per calendar day. As for hospital treatment and in the event of follow-up rehabilitation co-payments are limited to 28 days per calendar year. In other cases, e.g. when medicines, dressings, therapeutic remedies and aids are needed, insured persons have to make co-payments in the amount of 10 percent but of at least 5 euros and at most 10 euros. No insured person is required to pay more than the costs of the relevant cure, however. In case of medical aids and domestic nursing care, co-payments amount to 10 percent of the costs and 10 euros per prescription. As a rule, children are exempt from co-payments before the completion of age 18. The only exception concerns co-payments towards transport costs that have to be made also by insured persons who are not yet of age.

Contribution limits ensure that persons who are ill or have a disability obtain full medical care and that the statutory co-payments are not an unreasonable burden on them. Insured persons are not required to spend more than 2% of their annual gross income - available to them to cover subsistence costs - in order to cover such co-payments (so-called contribution limit). There is a special regulation for chronically ill persons. In derogation from the principle of co-payments of 2% per calendar year, a limit of 1 per cent of the annual gross income to cover their living expenses has applied to this category of persons. Insured persons whose co-payments have reached this limit in a given calendar year may get an exemption from their health insurance fund for all co-payments for the rest of that year.

As far as pregnancy-related problems are concerned and in connection with delivery of the baby, co-payment rules according to section 24e sentence 2 of Book V of the Social Code stipulating entitlement to medicines, dressings, therapeutic remedies and aids do not apply so that the insured woman is exempt from compulsory co-payments.

Report form for C102/ECSS:

Please state in detail what measures are taken to give effect to the provisions of paragraph 3 of Article 10 of C102/ECSS.

Please see in detail the explanations under II-4 on Section 1 Article 10 ECSS.

According to Sections 20 ff. SGB V, the health insurance funds must provide benefits to prevent disease risks (primary prevention) as well as to promote self-determined, health-oriented decisions by insured persons (health promotion),  for behaviour-related prevention, for health promotion and prevention in living environments for those insured in the statutory health insurance scheme and for health promotion in companies. The benefits aim particularly at reducing inequalities arising from social circumstances as well as gender-related inequalities in health opportunities.

Report form for C102/ECSS:

Please state in detail what measures are taken to give effect to the provisions of paragraph 4 of Article 10 of C102/ECSS.

The range of benefits of the statutory health insurance scheme is fully available to all insured persons (see II.4)

Report form for C102/ECSS:

Please state the length of the qualifying period which has been considered necessary to preclude abuse. Please summarize the rules concerning the computation of the qualifying period.

No change:

There is no qualifying period for medical benefits in the statutory health insurance.

Report form for the ECSS:

Please state whether the duration of hospital care is limited. If so, please specify the limit fixed in each case or in any consecutive period of three years.

No change:

The duration of medical benefits that are granted to persons insured in the statutory health insurance is not limited.

Report form for C102/ECSS:

Please indicate the provisions, if any, for the suspension of the medical care benefits referred to in Article 10 of C102/ECSS.

Entitlement to benefits is suspended if an insured person is behind with their contribution payments to the extent of two months' contributions and they do not pay despite being reminded. Excluded are examinations for the early detection of diseases and services according to Sections 25 and 26 of Book V of the Social Code (SGB V) that are necessary for the treatment of acute diseases or pain conditions and in cases of pregnancy and maternity. The suspension ends upon payment of all unpaid contributions and the contributions for the period of suspension. If instalment payments have been effectively established, the member is entitled to benefits again from that point on.

Unless otherwise stipulated by supranational or intergovernmental law, entitlement to benefits is generally suspended during stays abroad. Under the specified conditions, Regulation (EC) 883/2004 and certain social security agreements make it possible to receive medical benefits by way of benefits in kind assistance during stays abroad.  Section 17 SGB V further stipulates that members who have been sent abroad by their employer and fall ill during their stay abroad or require pregnancy and maternity benefits are to receive certain benefits from their employer for themselves and legally specified family members while abroad. Employers are entitled to partial cost reimbursement from the insured person's health insurance fund.

Report form for C102/ECSS:

I. Please state whether every claimant has a right of appeal in case of refusal of medical care benefits or complaint as to its quality or quantity, as stipulated in paragraph 1 of this Article. Please summarize the rules which apply in the case of an appeal.

2. Please state whether recourse is had to paragraph 2 of this Article and, if so, what measures are taken to ensure that every person protected has the right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

If insured persons do not agree with a decision of their health insurance provider, they can file an objection. Following the objection procedure, they can bring a lawsuit before the competent social court. They may also have the health insurance provider's decision reviewed by the supervisory authority responsible for the respective health insurance provider.

Report form for C130:

Please indicate the degree of incapacity for work prescribed for entitlement to sickness benefit.

Applicable legislation: Book V of the Social Code (SGB V) – Statutory Health Insurance, dated 20 December 1988

Insured persons are entitled to sickness benefit if their sickness makes them incapable of work or if they are treated as inpatients in a hospital, a health or a rehabilitation facility at the health insurance fund's expenses. The degree of incapacity for work is not prescribed.

Report form for the ECSS:

Please state to which of the subparagraphs a), b), or c) of Article 15 of the ECSS recourse is had and provide for statistical data depending on the chosen subparagraph:

No changes since the 45th Report:

All wage-earners, salaried employees and persons gainfully employed for the purpose of vocational training are compulsorily insured under the statutory health insurance and, according to Section 44 of Book V of the Social Code (SGB V), are therefore entitled to sickness benefit.

Title I under Article 76 for Article 15(a) of the ECSS

A.    Number of employees protected[7]:

i) under general scheme …                      34.3 million compulsorily insured persons

ii) under special schemes (if any) …       5.9 million voluntarily insured persons

   iii) Total …                                                   40.2 Million (April 2021)

B.    Total number of employees[8] …                   44.4 million (April 2021)

C.    Number of employees protected (A(iii)) per cent of total number of employees (B). Please state how these data are computed and give dates of reference. : 89,5%

Title II under Article 76 for Article 15(b) of the ECSS

A.      Number of economically active persons protected[9]:

i) under general scheme …                                30.1 million working compulsory members

ii) under special schemes (if any) …               4.4 million working voluntary members

   iii) Total …                                                            34.5 million

B.      Total number of residents[10]…                             83.2 million inhabitants (2020)

C.      Number of economically active persons protected (A(iii)) per cent of total number of residents (B). Please state how these data are computed and give dates of reference: 41,49%

Title III under Article 76 for Article 15(c) of the ECSS

A.       Please give the rules applied to determine whether a resident is entitled to benefit during the contingency covered.

B.       Please indicate, more particularly:

a.        the amount of the means of any description which excludes a resident altogether from entitlement to benefit;

b.       the amount of the means of any description which is allowed without a reduction of the full benefit.

Entitlement to benefits in the statutory health insurance is not dependent on the economic situation of the insured person. In particular, entitlement is not linked to income or assets, as statutory health insurance is based on the principle of solidarity.

Report form for ECSS/C130:

1.       If recourse is had to subparagraphs (a) or (b) of Article 15 of the ECSS (Article 19 of C130) for determining the persons protected, please state whether you have recourse, for the calculation of the benefit, to the provisions of Article 65 or to those of Article 66 of the ECSS (Articles 22 or 23 of C130).

2.       Please furnish information under this Article as follows:

                                 I.            if recourse is had to Article 65 of the ECSS (Article 22 of C130), in the form set out in Titles I, II and V under Article 65 below;

                               II.            if recourse is had to Article 66 of the ECSS (Article 23 of C130), in the form set out in Titles I, II and V under Article 66 below.

For Article 65 of the ECSS (Article 22 of C130), if chosen

Title I (Information on the standard wage)

A.       Please summarize the rules for the calculation of the benefit and the computation of the previous earnings. Please state whether recourse is had to the provisions of paragraph 3 of Article 65 and, if so, please indicate the maximum amount prescribed for the benefit or for the earnings taken into account for the computation of the benefit.

B.       Please state to which of the provisions of paragraph 6 of Article 65 you have recourse for selecting the skilled manual male employee to whose wage paragraph 3 of Article 65 refers.

Please specify more particularly:

a.        if recourse is had to subparagraph (b) of paragraph 6:

                                                               i.      how the division and the major group of economic activity to which the typical skilled employee belongs are determined with reference to paragraph 7; and

                                                             ii.      how the typical skilled employee in the major group is chosen; or

b.       if recourse is had to subparagraph (c) of paragraph 6, how the earnings of all persons protected are computed; or

c.        if recourse is had to subparagraph (d) of paragraph 6, how the average earnings of all the persons protected are computed.

C.       Please indicate, in any event, the time basis on which the wage of the typical skilled employee is calculated, with reference to the provisions of paragraph 9 of Article 65. Please confirm that, in accordance with the provisions of paragraph 4 of that Article, the same time basis is used for calculating the benefit and the family allowances.

Please indicate the amount of the wage of the skilled manual male employee selected as shown under B (standard wage).

Title II (Information on the replacement rate of benefit)

The standard beneficiary for whom the following information should be given is a man with a wife and two children where the previous earnings serving for the calculation of the benefit are equal to the wage of the skilled manual male employee shown in Title I above.

D.      Amount of benefit granted during the time basis.

E.       Amount of family allowances, if any, payable during employment for a period equal to the time basis.

F.       Amount of family allowances, if any, payable during the contingency for a period equal to the time basis.

G.      Sum of benefit and family allowances payable during the contingency (D+F) per cent of sum of the standard wage and family allowances payable during employment (C+E).

Title V (replacement rate for a woman employee)

The beneficiary for whom the following information should be given is a woman employee whose previous earnings serving for the calculation of benefit were equal to the wage of the skilled manual male employee shown in Title I above.

D. Amount of benefit granted during the time basis.

G. Amount of benefit (D) per cent of the standard wage (C).

No changes compared to the 45th Report, only values updated:

In the following, the amount of sickness benefit is calculated pursuant to Article 65 (Titles I and II):

Pursuant to sections 44 and 47 of Book V of the Social Code insured persons who are incapacitated for work on account of sickness are entitled to sickness benefit amounting to 70 percent of their previous regular earnings and income on which contributions are assessed (upper benefit assessment level), but not exceeding 90 percent of the net earnings calculated pursuant to section 47 (2) of Book V of the Social Code.

If a person received one-off payments subject to contributions during the previous twelve calendar months, the regular earnings are increased by one 360th of these one-off payments. The total amount of sickness benefit must not exceed 100 percent of the last net earnings excluding one-off payments.

The monthly benefit assessment ceiling (upper limit) for the assessment of sickness benefit amounted to 4,687.50 euros in 2020. In 2021, it amounts to 4,837.50 euros.

The sickness benefit is calculated according to the uniform regulations outlined above and the calculation is insofar not related to the sex or number of children etc.

Report form for the ECSS:

Please state the length of the qualifying period which has been considered necessary to preclude abuse.  Please summarize the rules concerning the computation of the qualifying period.

No changes since the 45th Report:

Persons subject to compulsory coverage in the statutory health insurance scheme are entitled to sickness benefit without a qualifying period.

Report form for the ECSS:

Please state whether the duration of sickness benefit is limited and, if so, specify the limit or limits fixed and indicate how they are determined. Please state whether a waiting period is provided for and, if so, indicate the length of such period and the rules concerning its computation.

No changes compared to the 45th report:

Section 48 of SGB V provides for an unlimited entitlement to sickness benefit. In case of incapacity for work on account of the same illness, however, sickness benefit is granted for a maximum of 78 weeks within three years from the day of the beginning of incapacity for work.

As long as insured persons have earnings or income from work subject to contributions, their entitlement to sickness benefit is suspended (section 49 of SGB V).

Report form for C130:

Please state under what circumstances funeral benefit is paid to the survivors of a deceased person who has in receipt of, or qualified for, sickness benefit, or to other dependants or to the person who bore the expense of the funeral.

No changes since the 45th Report:

The funeral allowance, previously provided as a statutory health insurance benefit, was abolished in 2004. Every insured person can, however, take out private insurance to cover funeral costs. The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) is the authority responsible for the supervision of private insurance contracts.

Report form for the ECSS:

Please indicate the provisions, if any, for the suspension of sickness benefits.

cf. explanations in II-10 and III -6

Report form for the ECSS:

Please state whether every claimant has a right of appeal in case of refusal of sickness benefits or complaint as to its quality or quantity, as stipulated in paragraph 1 of this Article. Please summarize the rules which apply in the case of an appeal.

If insured persons do not agree with a decision of their health insurance provider, they can file an objection. Following the objection procedure, they can bring a lawsuit before the competent social court. They may also have the health insurance provider's decision reviewed by the supervisory authority responsible for the respective health insurance provider.

Report form for C102/ECSS:

Please give the definition of the contingency which, under national laws or regulations, gives rise to unemployment benefit.

Basically, there have been no changes in the period under review as regards the eligibility requirements for unemployment benefit.

Persons are entitled to unemployment benefit from the unemployment insurance if they

·         are unemployed (an unemployed person is defined as a person who has no employment/self-employment at all or works less than 15 hours/week, looks for a new job, i.e. makes efforts to find a new job (personal initiative) and is available for placement by the employment agencies (ability to work and willingness to work)),

·         have registered as unemployed with the employment agency, and

·         have completed the qualifying period (section 142, Book III of the Social Code). The qualifying period is completed when the person concerned was engaged in employment with compulsory social insurance coverage for at least 12 months (precisely 360 calendar days) within the preceding 30 months (so-called framework period, section 143, Book III of the Social Code) or was otherwise insured with the Federal Employment Agency.

·        

·         A person who has reached the age required for the standard old-age pension is not entitled to unemployment benefit from the beginning of the following month.

·        

Report form for C102/ECSS:

1. Please state to which of the subparagraphs of Article 21 of C102/ECSS recourse is had and provide for statistical data depending on the chosen subparagraph:

Title I under Article 76 for Article 21(a) of C102/ECSS

A.    Number of employees protected[11]:

i) under general scheme …

ii) under special schemes (if any) …

   iii) Total …

B.    Total number of employees[12] …

C.    Number of employees protected (A(iii)) per cent of total number of employees (B). Please state how these data are computed and give dates of reference.

Protected employees comprise the number of employees liable for social insurance contributions.

Please note: In contrast to previous versions of the report, civil servants (Beamte) are no longer subtracted here. Footnote 12 explicitly includes the "civil servants". That explains the significant change in the ratio.

Title II under Article 76 for Article 21(b) of C102/ECSS

A.       Please give the rules applied to determine whether a resident is entitled to benefit during the contingency covered.

B.       Please indicate, more particularly:

a.        the amount of the means of any description which excludes a resident altogether from entitlement to benefit;

b.       the amount of the means of any description which is allowed without a reduction of the full benefit.

Report form for C102/ECSS:

1.       If recourse is had to subparagraph a) of Article 21 of C102/ECSS for determining the persons protected, please state whether you have recourse, for the calculation of the benefit, to the provisions of Article 65 or to those of Article 66 of C102/ECSS.

2.       Please furnish information under this Article as follows:

              I.   if recourse is had to Article 65 of C102/ECSS, in the form set out in Titles I, II and V under Article 65 below;

            II.   if recourse is had to Article 66 C102/ECSS, in the form set out in Titles I, II and V under Article 66 below.

For Article 65 of C102/ECSS, if chosen

Title I (Information on the standard wage)

A.       Please summarize the rules for the calculation of the benefit and the computation of the previous earnings. Please state whether recourse is had to the provisions of paragraph 3 of Article 65 and, if so, please indicate the maximum amount prescribed for the benefit or for the earnings taken into account for the computation of the benefit.

B.       Please state to which of the provisions of paragraph 6 of Article 65 you have recourse for selecting the skilled manual male employee to whose wage paragraph 3 of Article 65 refers.

Please specify more particularly:

a.        if recourse is had to subparagraph (b) of paragraph 6:

                                                               i.      how the division and the major group of economic activity to which the typical skilled employee belongs are determined with reference to paragraph 7; and

                                                             ii.      how the typical skilled employee in the major group is chosen; or

b.       if recourse is had to subparagraph (c) of paragraph 6, how the earnings of all persons protected are computed; or

c.        if recourse is had to subparagraph (d) of paragraph 6, how the average earnings of all the persons protected are computed.

C.       Please indicate, in any event, the time basis on which the wage of the typical skilled employee is calculated, with reference to the provisions of paragraph 9 of Article 65. Please confirm that, in accordance with the provisions of paragraph 4 of that Article, the same time basis is used for calculating the benefit and the family allowances.

Please indicate the amount of the wage of the skilled manual male employee selected as shown under B (standard wage).

Title II (Information on the replacement rate of benefit)

The standard beneficiary for whom the following information should be given is a man with a wife and two children where the previous earnings serving for the calculation of the benefit are equal to the wage of the skilled manual male employee shown in Title I above.

D.      Amount of benefit granted during the time basis.

E.       Amount of family allowances, if any, payable during employment for a period equal to the time basis.

F.       Amount of family allowances, if any, payable during the contingency for a period equal to the time basis.

G.      Sum of benefit and family allowances payable during the contingency (D+F) per cent of sum of the standard wage and family allowances payable during employment (C+E).

Title V (replacement rate for a woman employee)

The beneficiary for whom the following information should be given is a woman employee whose previous earnings serving for the calculation of benefit were equal to the wage of the skilled manual male employee shown in Title I above.

D. Amount of benefit granted during the time basis.

G. Amount of benefit (D) per cent of the standard wage (C).

For beneficiaries with children, the resulting unemployment benefit is 67% , for all other beneficiaries 60 % of the previous earnings calculated on the basis of gross earnings (assessment earnings) minus the normal statutory deductions for employees (standardized net earnings = benefit-relevant earnings). Gross earnings are taken into account only to the extent to which they are used as a basis for the assessment of social security contributions, i.e. up to the contribution assessment ceiling which, in 2021, is 7,100 euros in western Germany and 6,700 euros in eastern Germany (maximum amount according to Article 65  paragraph 3)

The contribution assessment ceiling is identical with the contribution assessment ceiling in pension insurance. The contribution assessment limits in the general pension insurance change on January 1 of each year. They change in accordance with the relation between the gross wages and salaries per employee (Section 68 (2) sentence 1 SGB VI) in the previous calendar year and the corresponding gross wages and salaries in the calendar year before that year. The changed amounts are rounded up to the next higher multiple of 600 only for the calendar year for which the the contribution assessment ceiling is determined.

Gross wages and salaries per employee are the gross wages and salaries per employee determined by the Federal Statistical Office, excluding persons in work opportunities with compensation for additional expenses, in each case according to the system of national accounts.

With regard to the replacement rate, no differentiation is made between the sexes (question Titel II and V): For beneficiaries with children, the resulting unemployment benefit is 67%. The family supplement is thus 7 percent.

The normal statutory deductions for employees are the taxes and social security contributions that employees normally have to pay regardless of their personal circumstances. For the purpose of determining the benefit-relevant earnings, these deductions are calculated in a standardized form. As from 1 January 2005, assessment earnings are subject to a flat-rate deduction of 21 % to account for the social security contributions.

Unemployed persons with a previous average wage of 7,100 euros per month (average of the last twelve month) receive, after deductions (social security contributions and taxes), approx. 2,514 euros (tax class IV). With tax class III, they receive approx. 2.935 euros.

Report form for C102/ECSS:

Please state the length of the qualifying period which has been considered necessary to preclude abuse.  Please summarize the rules concerning the computation of the qualifying period.

The "qualifying period" as defined in Convention 102 (Article 1 (1) (f)) corresponds to the Anwartschaftszeit" (qualifying period) in Germany (section 142, Book III of the Social Code). This qualifying period is deemed to be fulfilled if the person concerned was engaged in  employment with compulsory social insurance coverage (sections 24 to 28, Book III of the Social Code) for no less than twelve months within the framework period (normally the last 30 months preceding registration as unemployed) (section 142, Book III of the Social Code).

Section 142 (2) of Book III of the Social Code provides for easier acquisition of entitlement to unemployment benefits for employees who, due to the special features of their occupation or the sector of the economy in which they are employed, are predominantly employed for only a short period of time. According to this provision, employees who are predominantly employed for a short period of time can, under further conditions, already acquire an entitlement to unemployment benefits if they wereemployed for at least six months (180 days) within the last 30 months prior to becoming unemployed (framework period) and subject to compulsory insurance with the Federal Employment Agency.

Contributions to employment promotion (unemployment insurance) - insofar as they are earmarked for unemployment benefits - serve to finance the unemployment benefits of employees who belong to the risk-sharing community of insured persons until the insured event occurs and who have accordingly borne the risk of unemployment insurance up to that point. This corresponds to the basic idea of all risk insurances. Claimant are therefore required to prove that they have belonged to the community of insured persons both for a certain minimum period and in a temporal proximity to the insured event.

Unemployment insurance law already deviates considerably from this basic principle in the interest of social protection for employees. Unemployment benefits can even be claimed by those who no longer belong to the community of insured persons when they become unemployed, but who were employed subject to compulsory social insurance contributions for at least twelve months in the last 30 months.

Report form for C102/ECSS:

Please state whether the duration of unemployment benefits is limited and, if so, specify the limit or limits fixed and indicate how they are determined.

The duration of the entitlement to unemployment benefits depends on the duration of the insurance period in the last five years before unemployment and

the age of the unemployed person at the time of entitlement. (section 147 of Book III of the Social Code (SGB III)).

The maximum duration of unemployment benefits of twelve months is reached for employees under 50 years of age after an insurance period of 24 months. For older employees, there is a staggered maximum period of up to 24 months depending on age. The longer maximum period of entitlement for older employees takes into account in particular the significantly more difficult labor market situation for this group of people compared with younger employees.

Report form for the ECSS:

Please state whether a waiting period is provided for and, if so, indicate the length of such period and the rules concerning its computation. Please also state the maximum period of employment which is deemed temporary in the meaning of para (a) of Article 24 of the ECSS.

Please state whether any special rules have been adopted as regards benefits /or seasonal workers and, if so, what are these rules.

See explanations on point IV.6. re: the duration of the entitlement to unemployment benefits depending on the duration of the insurance period in the last five years before unemployment and

the age of the unemployed person at the time of entitlement.

Report form for the ECSS:

Please state in detail what measures are taken to give effect to the provisions of paragraph 6 of Article 24 of the Protocol.

Wide ranging, flexible options to support workers are provided for in the active employment promotion measures of the third chapter of Book III of the Social Code (SGB III),

including a right to counselling and placement for young people and adults who are active in working life or want to be. The type and scope of the counselling is based on the need of the person seeking advice. Counselling may therefore include, for example, the provision of information and advice on career development or career changes, the situation and development of the labour market and occupations, and vocational training possibilities. Placement efforts are aimed at balancing the labour market and include all activities with the goal of bringing jobseekers together with employers to establish an employment relationship. Those jobseekers at risk of unemployment can also receive support from the placement budget when initiating or taking up employment subject to compulsory social insurance, if this is necessary for integration into work. The integration into work of these persons can be supported with measures for such integration and for activation.

These instruments pave the way to employment for many of those affected, or make it easier for them to remain in employment and advance in their careers. The fact that the employment agencies are also the first point of contact for the companies in the placement process and are involved at an early stage is also beneficial in this regard.

A second focus is on instruments to promote vocational further training. Funding for CVET programmes is not only open to the unemployed or those facing redundancy, but also to employed workers regardless of their age, qualification and size of the enterprise. We support employees whose jobs could be replaced by new technologies or which are affected by structural changes. The support may include paying for workers’ training measures as well as granting wage subsidies for employers to supplement workers’ salaries whilst they are on training. Wage subsidies and the share of the covered education costs depend on the size of the company. People older than 45 years in small and medium sized enterprises with up to 250 employees and seriously disabled people are specially considered concerning the promotion conditions, i.e. the subsidies of the education costs might be up to 100 %.. In addition, we introduced a right to make up for a professional qualification for low-skilled people.

People receiving benefits under the scheme of Basic income support for jobseekers under Book II of the Social Code (SGB II) also have acces to this wide array of support. Additionally SGB II provides for even further possibilities of support for disadvantaged people, such as wage subsidies according to the Teilhabechancengesetz, debt and psycho-social counselling.

Overview of BMAS measures to deal with the effects of the COVID 19 pandemic:

·         Act on the Temporary, Crisis-related Enhancement of the Provisions on Short-time Work Allowance of 13 March 2020 (Gesetz zur befristeten krisenbedingten Verbesserung der Regelungen für das Kurzarbeitergeld) To facilitate rapid responses to crises such as the COVID 19 pandemic, temporary authorisation to issue ordinances was introduced into the SGB III. In the case of short-time work schemes (Kurzarbeit), the measures were to be in force until 2021. On this basis, the short-time work allowance (Kurzarbeitergeld) ordinance and several amending ordinances were issued. The ordinances regulate, for a limited period until the end of 2021, easier access to short-time work benefits and financial relief for employers through the reimbursement of social security contributions during short-time work.

·         Social protection package (Sozialschutz-Paket): As a first step, the Federal Government took immediate measures to quickly and effectively counter the serious negative effects in the form of the Act to Facilitate Access to Social Security and on the Deployment and Protection of Social Service Providers due to Coronavirus SARS-CoV-2 (Gesetz für den erleichterten Zugang zu sozialer Sicherung und zum Einsatz und zur Absicherung sozialer Dienstleister aufgrund des Coronavirus SARS-CoV-2) of 27 March 2020.

o   Partially exempting additional earnings being counted againstKurzarbeitergeld when taking up employment in essential jobs.

o   Quick and unbureaucratic access to basic income for jobseekers under Book II of the Social Code (SGB II) to secure livelihoods if no higher-order benefits apply. Easing burdens by only considering substantial assets and assuming for six months that the actual costs of accommodation and heating are reasonable.

o   Monthly financial subsidies to social service providers through the Act on the Deployment of Social-service Providers (Sozialdienstleister-Einsatzgesetz, or SodEG for short) of 28 March 2020, in order to maintain important social infrastructure, e.g. in the field of labour market policy, rehabilitation and assistance for persons with disabilities.

o   A temporary authorisation to issue ordinances in the legislation on working hours (Arbeitszeitgesetz) allows for nationwide exemptions from the working hours regulations for certain activities in order to ensure maintenance of public safety and order, health and nursing care, essential public services and the supply of essential goods to the population.

o   Extension of time limits for short-term employment extended to mitigate the effects of restricted mobility in Europe and the resulting significant decline in seasonal workers.

·         Work of Tomorrow Act (Arbeit-von-morgen-Gesetz): The Federal Government was authorised to extend the period of entitlement to the short-time work allowance (Kurzarbeitergeld) to up to 24 months in the event of exceptional labour market conditions. By ordinance, the duration of Kurzarbeitergeld was gradually extended to 24 months at most until 31 December 2021.  

In addition, the support of continuous vocational education measures  to prepare people in Germany in due time for the work of tomorrow were improved: Wage subsidies and the share of the covered education costs are increased and a right for low-skilled people to make up for a professional education is introduced

·         Social protection package II (Sozialschutz-Paket II): The extension of the measures of the first social protection package aims to go a long way towards alleviating the economic and social hardships of the crisis.

o   Gradual increase of Kurzarbeitergeld for employees until 31 December 2020.

o   Exemption of earnings from marginal employment (Minijob) started during short-time work from being counted against the Kurzarbeitergeld. The restriction of additional earnings, which are not counted against Kurzarbeitergeld, to essential jobs has been abolished.

o   One extension of unemployment benefits for a limited period (until the end of December 2020) by three months.

o   Ensuring lunch is provide to pupils and children in need of assistance in the event of pandemic-related closures of their day-care facilities or other places for minding children.

·         Act to Secure Employment (Beschäftigungssicherungsgesetz): Extension of essential pandemic-related special regulations for Kurzarbeitergeld such as the gradual increase and exemption from additional income from marginal employment (mini-job) until the end of 2021.  Employers who qualify employees during short-time work will receive a partial reimbursement of course costs and social security contributions until 31 July 2023.

·         Act on Calculation of Basic Needs Assistance (Gesetz zur Ermittlung der Regelbedarfe) and amendments to Book XII of the Social Code (SGB XII) and other legislation: As a supplement to the hardship case provisions for additional needs in the scheme for basic income for jobseekers, it has been possible to grant aid for unavoidable basic needs under certain conditions since January 2021.

·         Social protection package III (Sozialschutz-Paket III):

o   Extension of easier access to basic income systems until 31 December 2021.

o   Extension of the special regulations on the needs for lunches in schools and workshops for persons with disabilities.

o   Provision of a one-off financial assistance payment for adult beneficiaries of minimum income schemes in May.

o   Extension of the special mandate of the SodEG until 31 December 2021 at the latest.

·         Financial support for the Federal Employment Agency (BA) to deal with the COVID 19 pandemic, because the expansion of benefits had serious effects on the organisation in general, but especially on the BA's budget. The subsidy for the BA included in the 2021 federal budget saims to secure the BA's ability to function in the future.

·         Federal programme "Securing training places (apprenticeships)” (Ausbildungsplätze sichern) This programme was launched on 1 August 2020 and aims to protect training places (apprenticeships) during the crisis. Companies offering training that have been particularly affected by the pandemic receive support for maintaining or even increasing the number of training places they offer and enabling young people to begin, continue and successfully complete their training, thus preserving training capacities, avoiding short-time work for those in training and their trainers, promoting contract training and joint training and creating incentives to take on trainees in the event of an insolvency.

Report form for C102/ECSS:

Please indicate the provisions, if any, for the suspension of unemployment benefits.

Book III of the Social Code provides that in certain cases benefits may be "suspended" or denied" (Article 69 of the Convention):

a.      The entitlement to unemployment benefits is suspended:

1. in general as long as the unemployed person is absent from Germany unless Regulation (EC) No. 883/2004 or bilateral social security agreements provide otherwise for certain groups of persons;

2. as long as the unemployed person is in receipt of one of the social benefits specified in section 156 of Book III of the Social Code;

3. as long as the unemployed person receives or may claim earnings from employment (section 157, Book III of the Social Code);

4. when the claimant receives severance pay, at the latest until the ordinary period of notice has expired (section 158, Book III of the Social Code))

5. in case of unemployment in connection with a labour dispute:

In particular, no benefits are paid to unemployed persons who are on strike or affected by a lock-out (section 160 (2), Book III of the Social Code).

6. Unemployment benefits are denied during a waiting period if the insured persons brought about the contingency themselves without just cause because they

-        have terminated their job (voluntarily) or have given the employer cause for the termination by conduct contrary to the terms of the employment contract,

-        have not accepted or taken up a reasonable offer of employment or have prevented the initiation of an employment relationship by their conduct,

-        have failed to demonstrate the personal jobsearching efforts required by the Employment Agency,

-        have refused to participate in a measure for activation and labour market integration or a measure for vocational training or further training or a measure for participation in working life despite having been informed of the legal consequences,

-        have refused to take part in an integration course or a course for the promotion of German as a foreign language in spite of having been informed of the legal consequences,

-        have broken off a measure or have given cause for exclusion from one of these measures through behaviour incompatible with the measure,

-        have not complied with a request by the employment agency to register or to appear for a medical or psychological examination, or have not complied with the obligation to register for an early job search.

The waiting period lasts from one week to twelve weeks depending on the reason for the blocking period. The duration of the entitlement to benefits is reduced by the waiting period. When the unemployed person has given reason to impose waiting periods of 21 weeks in total after having acquired the benefit entitlement, the unused entitlement to unemployment benefit lapses (section 147, Book III of the Social Code).

Report form for C102/ECSS:

Please state whether every claimant has a right of appeal in case of refusal of unemployment benefits or complaint as to its quality or quantity, as stipulated in paragraph 1 of this Article. Please summarize the rules which apply in the case of an appeal.

The objection (Widerspruch) proceedings can be initiated easily and quickly by anyone. The objection has to be lodged within one month after notification of the administrative act with the issuing authority in writing or dictated into the record of the authority (section 84 of the Social Courts Act). If no decision is taken on the objection after the expiry of a period of three months, a complaint for failure to act may be filed in accordance with section 88 of the Social Courts Act.

Both in the administrative proceedings and in social court proceedings, applicants have the possibility to be represented free of charge by trade unions, employers' associations or other autonomous associations of employees with social policy or profession-related objectives (section 13 (6), second sentence, Book X of the Social Code, section 73 (2) nos. 5, 7 of the Social Courts Act).

Please provide a reply to the question:

[…]

The statements and explanatory comments from the 2019 Supplementary Report regarding the reasons for the statutorily stipulated gradual increase of the standard retirement age in the statutory pension insurance as well as in other compulsory old-age security systems for specific occupational groups continue to apply. We include these statements and explanatory comments again below for completeness. As explained at the time the increase of the retirement age is caused by the ongoing demographic change and the clear ageing of the population in Germany. The gradual increase in the statutory retirement age to 67 years in the statutory pension insurance by 2031 as well as the different measures to reduce pre-retirement options are important in order to guarantee the sustainable funding and adequacy of the benefits in the above-mentioned old-age provision systems in the long run. Abandoning the statutory measures already applicable since the year 2012 is thus not planned.

The 2021 Pension Adequacy Report of the EU Social Protection Committee and of the European Commission also affirms that in general the German old-age security system provides for a successful balance between financial sustainability and adequacy of benefits. The Report in particular sees the relatively constant period of pension receipt caused by the increasing age of retirement positively. The OECD projections contained in the Report on the future adequacy of the pensions in the year 2059 in Germany assume that the replacement rate (with the inclusion of the additional provisions for old age) remains almost constant. For low-wage earners, it will even rise due to the basic pension introduced (for more information see the following sections) compared to the reference year 2019.

Explanatory comments on the increase of the standard retirement age above 65 years:

Coping with demographic change is a key challenge for Germany, too. Persistently low birth rates and longer life expectancy are causing major shifts in the age structure of the population. In future, more older and fewer younger people will be available on the labour market and at the same time there will be significantly more pension recipients and fewer contributors. Employers are at risk of no longer finding enough skilled workers - a problem which is already becoming apparent for some occupations, sectors and regions in Germany. In the long term, the number of persons receiving statutory pensions will go up and that of contributors will go down.

Like other European countries, especially in Scandinavia, Germany has responded to this challenge by adjusting the retirement age:

In 2007, the German Bundestag decided to lift the standard retirement age for the statutory pension insurance from age 65 to age 67 in order to strengthen the financial underpinnings of statutory pensions and in order to counter the looming shortage of skilled workers.

To ensure that employers and workers have enough time for the necessary adjustments, the standard retirement age is raised gradually in small steps: Since the beginning of 2012, it has risen by one month per year; starting in 2024 it will increase by two months. The new standard retirement age of 67 years will only apply from 2029 onwards (for people born in 1964). In 2019, the standard retirement age will be increased by another month for the 8th time, reaching 65 years and eight months. It should be noted in this context that older people can continue to tailor their employment to their personal preferences. It is possible to retire before reaching the standard retirement age as well as to work beyond the retirement age. The Flexible Pensions Act (Flexirentengesetz) further improved the statutory framework conditions for older people.

In Germany, the gradual increase of the standard retirement age to 67 years is not limited to persons covered by statutory pension insurance (gesetzliche Rentenversicherung). Persons covered by the pension insurance fund for farmers (Alterssicherung der Landwirte, by various pension funds for freelancers who are members of their corresponding professional chambers, and civil servants are subject to the same increase.

The long period of gradual increases of the standard retirement age makes it possible to adapt working conditions to ageing workforces. It is important to continuously mould the world of work in an age/ageing appropriate manner and to gear it more strongly to the skills, competencies and needs of older workers. Impressive progress has been made in this regard over the past few years as illustrated by the remarkable rise in the labour force participation rate of older persons. Between 2000 and 2017, the employment rate of persons between the ages of 60 and 64 increased more strongly in Germany than in any other EU country.

We also refer to the statistical data on age trends provided in the framework of the CEACR direct request below.

Please provide a reply to the question:

[…]

The employment rates of persons aged 60 to 64 over the period 2000 to 2019

Source: Eurostat

The labour force participation rate of those aged 60 to 64 has increased continuously over the last 20 years. This reflects the rising demand for staff aged 60 or older in the German economy. Moreover, the population projections of the Federal Statistical Office show that the old-age dependency ratio will increase considerably over the next decades. If, under these preconditions, the statutory pension is to continue to provide for a decent standard of living in old-age and if, at the same time, the employed population is not to be burdened excessively through their contribution payments, it is unavoidable to increase the statutory retirement age beyond 65.

Source: German Federal Statistical Office, data from the 14th coordinated population projection for a moderate population development (second variant). It shows the ratio of the number of persons aged 65 or older and the number of persons aged 20 to 64.

Source: German Federal Statistical Office.

Report form for C102/ECSS:

1. Please state to which of the subparagraphs of Article 27 of the ECSS recourse is had and provide for statistical data depending on the chosen subparagraph:

Title I under Article 76 for Article 27(a) of the ECSS

A.    Number of employees protected[13]:

i) under general scheme …

ii) under special schemes (if any) …

   iii) Total …

B.    Total number of employees[14] …

C.    Number of employees protected (A(iii)) per cent of total number of employees (B). Please state how these data are computed and give dates of reference.

The provision of paragraph 1 (a) is applied.

(Art. 76 Title I)

Explanatory comments:

Information on the pension insurance system is based on the number of employees with compulsory social insurance coverage, supplemented by employees having marginal part-time jobs.

Title II under Article 76 for Article 27(b) of the ECSS

A.      Number of economically active persons protected[15]:

i) under general scheme …

ii) under special schemes (if any) …

   iii) Total …

B.      Total number of residents[16]…

C.      Number of economically active persons protected (A(iii)) per cent of total number of residents (B). Please state how these data are computed and give dates of reference.

Title III under Article 76 for Article 27(c) of the ECSS

A.       Please give the rules applied to determine whether a resident is entitled to benefit during the contingency covered.

B.       Please indicate, more particularly:

a.        the amount of the means of any description which excludes a resident altogether from entitlement to benefit;

b.       the amount of the means of any description which is allowed without a reduction of the full benefit.

Please provide a reply to the question:

[…]

As explained in detail under I. above, retirement income from a Riester pension is increasingly necessary and required to adequately provide for old-age. This is also pointed out every year in the Federal Government's pension insurance report. Against this background, the Riester pension continues to be included in the calculations presented below.

Rate of adjustment rate oft he current pension value as a percentage oft he previous year:

Date of pension adjustment

Old Länder

New Länder

1 July 2016

4.25

5.95

1 July 2017

1.90

3.59

1 July 2018

3.22

3.37

1 July 2019

3.18

3.91

1 July 2020

3.45

4.20

Report Form for the ECSS:

1.   Please indicate the nature and the length of the minimum qualifying period or the minimum average yearly number of contributions, as the case may be, which entitles the persons protected to a pension. Please summarize the rules concerning the computation of such qualifying period. Please state whether recourse is had to paragraphs 1 and 2 or paragraph 3 or 4 of this Article.

The qualifying period remains

- for the standard old-age pension: five years,

- for the old-age pension for persons with a long insurance record: 35 years,

- for the old-age pension for persons with severe disabilities: 35 years,

- for the old-age pension for persons with a particularly long insurance record: 45 years,

- for the old-age pension for miners with many years of work underground: 25 years.

2.   If recourse is had to paragraphs 1 and 2 the benefit the amount of which is shown under Article 28 should be the benefit granted during the time basis to a standard beneficiary who has completed 30 years of contribution or employment, or 20 years of residence. Please indicate, under this Article, how the reduced benefit is calculated to which a standard beneficiary is entitled who has completed a qualifying period of 15 years of contribution or employment or in respect of whom half the yearly average number of contributions prescribed for title to full benefit has been paid.

3.   If recourse is had to paragraph 3 the benefit the amount of which is shown under Article 28 should be the benefit granted during the time basis to a standard beneficiary who has completed ten years of contribution or employment or five years of residence.

Report form for the ECSS:

Please indicate the provisions, if any, for the suspension of old-age benefits.

Until the standard retirement age is reached, per calendar year' additional income of EUR 6,300 remains exempt. If the additional income exceeds this limit, there may be entitlement to a partial pension. The amount of the partial pension is determined by deducting the additional income from the old-age pension. For this purpose, additional income above a limit of 6,300 euros per calendar year is gradually counted against the pension by 40 percent up to an individual upper limit (additional income cap). Only when the upper limit is exceeded will the additional income above this limit be credited in full to the pension. The additional income cap is based on the highest annual income subject to compulsory social insurance contributions in the last 15 calendar years before retirement. No pension entitlement exists if the additional income to be deducted from the pension exceeds the amount of the full pension.

As a result of the Covid 19 pandemic, the per-calendar-year additional income limit of EUR 6,300 was raised to EUR 44,590 for 2020 and to EUR 46,060 for 2021. At the same time, the application of the additional income cap was suspended.

After reaching the standard retirement age, additional income may be earned without restriction.

Report form for the ECSS:

Please state whether every claimant has a right of appeal in case of refusal of old-age benefit or complaint as to its quality or quantity, as stipulated in paragraph 1 of this Article. Please summarize the rules which apply in the case of an appeal.

No changes to the previous legal situation.