Consolidated Report on the application of ILO Conventions Nos 3, 12, 17, 18, 19, 24, 25, 102, 118, 121, 128, 130 & the European Code of Social Security, as amended by its Protocol, ratified by
Government Production Team

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]

Ø  The information provided by the Government under ILO Conventions Nos 102, 118, 121, 128, and 130 should be relevant for the treatment of ILO Social Security Conventions Nos 3, 12, 17, 18, 19, 24, and 25 ratified by Germany. If the Government may wish to provide additional information on the application of ILO Conventions Nos 3, 12, 17, 18, 19, 24, and 25, please consult the report form for the corresponding Convention.

Ø  Please enter any modifications or new information using TRACK CHANGES function in MICROSOFT WORD.

Ø  Where the text of the corresponding provisions of the ECSS and C102 has the same wording, the wording of C102 is taken as the basis, with eventual changes in the ECSS reproduced in brackets.

Ø  Questions of the Report Form on the European Code of Social Security (ECSS) or on ILO Conventions (e.g. RF/C102) for which information is lacking are reproduced in a box below the respective provisions.

Ø  Replies to pending questions raised by the CEACR may be provided in a box below the CEACR comments.


Summary table

Category

Relevant Articles

Questions raised by the CEACR

Part I. General provisions

I. General provisions

Art. 6 C102/ECSS,

in conjunction with Part V (Old-Age benefit)

Part II. Medical Care

II-1. Regulatory framework

Art.7 C102/ECSS

Art.8 C130

II-2. Contingencies covered

Art.8 C102/ECSS

Art.7 C130

II-3. Persons Protected

Art.9 C102/ECSS

Art.10,12 C130

II-4. Types of Benefits

Art.10(1) C102/ECSS

Art.13 C130

II-5. Cost-sharing

Art.10(2)C102/ECSS

Art.17 C130

II-6. Objectives of Medical Care

Art.10(3) C102/ECSS

Art.9 C130

II-7. Promotion of the general health service

Art.10(4) C102/ECSS

II-8. Qualifying period

Art.11 C102/ECSS

Art.15 C130

II-9. Minimum duration of Benefit

Art.12 C102/ECSS

Art.16 C130

II-10. Suspension of Benefit

Art.69 C102, Art.68 ECSS

Art.28 C128

II-11. Right of complaint and appeal

Art.70 C102, Art. 69 ECSS

Art.29 C130

II-12. Financing and Administration

              Art.71,72 C102

Art.70,71 ECSS

              Art.30,31 C130

Part III. Sickness Benefit

III-1. Regulatory framework

Art.13 ECSS, Art.18 C130

III-2. Contingencies covered

Art.14 ECSS, Art.7(b) C130

III-3. Persons Protected

Art.15 ECSS, Art.19 C130

III-4. Level and Calculation of Benefit

Art.16 ECSS, Art.21C130

III-5. Qualifying period

Art.17 ECSS, Art.25 C130

III-6. Minimum duration of Benefit

Art.18 ECSS, Art.26 C130

III-7. Funeral Benefit

Art.27 C130

III-8. Suspension of Benefit

Art.68 ECSS, Art.28 C130

III-9. Right of complaint and appeal

Art.69 ECSS, Art.29 C130

III-10. Financing and Administration

Art.70,71 ECSS

Art.30,31,33 C130

Part IV. Unemployment Benefit

IV-1. Regulatory framework

Art.19 C102/ECSS

IV-2. Contingency covered

Art.20 C102/ECSS

IV-3. Persons Protected

Art.21 C102/ECSS

IV-4. Level and Calculation of Benefit

Art.22 C102/ECSS

IV-5. Qualifying period

Art.23 C102/ECSS

IV-6. Minimum duration of Benefit

Art.24(1,2) C102

Art.24(1-3) ECSS

IV - 7. Waiting period

Art.24(3,4) C102

Art.24(4,5) ECSS

IV - 8. Promotion of employment

Art.24(6) ECSS

IV-9. Suspension of Benefit

Art.69 C102, Art.68 ECSS

IV-10. Right of complaint and appeal

Art.70 C102, Art.69 ECSS

IV-11. Financing and Administration

Art.71, 72 C102 

Art.70, 71 ECSS

Part V. Old-Age Benefit

V-1. Regulatory framework

Art.25 ECSS

Art.14 C128

V-2. Contingency covered

Art.26 ECSS

Art.15 C128

V-3. Persons Protected

Art.27 ECSS

Art.16 C128

V-4. Level and Calculation of Benefit

Art.28 ECSS, in conjunction with Art. 65

Art.17 C128, in conjunction with Art. 26

V-5. Adjustment of Benefit

Art.65(10) ECSS, Art.29 C128

V-6. Qualifying period

Art.29 ECSS, Art.18 C128

V-7. Duration of Benefit

Art.30 ECSS, Art.19 C128

V-8. Suspension of Benefit

Art.31 C128, Art.68 ECSS

Art.32,33 C128

V-9. Right of complaint and appeal

Art.69 ECSS, Art.34 C128

V-10. Financing and Administration

Art.70,71 ECSS

Art.30,35,36 C128

Part VI. Employment Injury Benefit

VI-1. Regulatory framework

Art.31 ECSS

VI-2. Contingency covered

Art.32 ECSS

Art.6 C121

VI-3. Definition of Industrial Accident

Art.7 C121

VI-4. Definition of Occupational Disease

Art.8 C121

VI-5. Persons Protected

Art.33 ECSS

Art.4 C121

VI-6. Medical Care and allied benefits

Art.34 ECSS

 Art.10 C121

VI – 7. Cost-sharing and avoidance of hardship

Art.34 ECSS

Art.11 C121

VI-8. Prevention, rehabilitation and placement services

 

Art.35 ECSS

Art.26 C121

VI – 9. Temporary or initial incapacity for work

Art.36(1) ECSS

Art.13 C121

VI – 10. Loss of earning capacity likely to be permanent

Art.36(1) ECSS

Art.14(1) C121

VI – 10 (a). Total loss of earning capacity

Art.36(1) ECSS

Art.14(2) C121

VI – 10 (b). Partial loss of earning capacity

Art.36(2) ECSS

Art.14(3) C121

VI – 11. Death of the breadwinner: periodical payment

Art.36(1) ECSS

Art.18(1) C121

VI – 12. Death of the breadwinner: funeral benefit

Art.18(2) C121

VI – 13. Lump-sum payment

Art.15, 18(3) C121

Art.36(3) ECSS

Art.14(4)(5) C121

VI-14. Adjustment of Benefit

Art.65(10) ECSS, Art.21 C121

VI – 15. Increments and reassessment of payments

Art.17 C121

Art.16 C121

VI-16. Duration of Benefit

Art.38 ECSS

Art.9(3) C121

VI-17.  Qualifying conditions

Art.37 ECSS

Art.9(1)(2) C121

VI-18. Suspension of Benefit

Art.68 ECSS

Art.22 C121

VI-19. Right of complaint and appeal

Art.69 ECSS

Art.23 C121

VI-20. Financing and Administration

Art.70,71 ECSS

Art.25 C121

Art.24 C121

Part VII. Family Benefit

VII-1. Regulatory framework

Art.39 C102/ECSS

VII-2. Contingency covered

Art.40 C102/ECSS

VII-3. Persons Protected

Art.41 C102/ECSS

VII-4. Types of Benefits

Art.42 C102/ECSS

VII-5. Qualifying period

Art.43 C102/ECSS

VII-6. Level and Calculation of Benefit

Art.44 C102/ECSS

VII-7. Duration of Benefit

Art.45 C102/ECSS

VII-8. Suspension of Benefit

Art.69 C102, Art.68 ECSS

VII-9. Right of complaint and appeal

Art.70 C102, Art.69 ECSS

VII-10. Financing and Administration

Art.71,72 C102

Art.70,71 ECSS

Part VIII. Maternity Benefit

VIII-1. Regulatory framework

Art.46 C102/ECSS

VIII-2. Contingency covered

Art.47 C102/ECSS

VIII-3. Persons protected

  Art.48 C102/ECSS

VIII-4. Medical Care

Art.49 C102/ECSS

VIII-5. Level and Calculation of benefit

Art.50 C102/ECSS

VIII-6. Qualifying period

Art.51 C102/ECSS

VIII-7. Minimum duration of benefit

Art.52 C102/ECSS

VIII-8. Suspension of benefit

Art.69 C102/Art.68 ECSS

VIII-9. Right of complaint and appeal

Art.70 C102, Art.69 ECSS

VIII-10. Financing and Administration

    Art.71,72 C102

    Art.70,71 ECSS

Part IX. Invalidity Benefit

IX-1. Regulatory framework

Art.53 ECSS, Art.7 C128

IX-2. Contingency covered

Art.54 ECSS, Art.8 C128

IX-3. Persons Protected

Art.55 ECSS, Art.9 C128

IX-4. Level and Calculation of Benefit

Art.56 ECSS, in conjunction with Art. 65

Art.10 C128, in conjunction with Art. 26

IX-5. Adjustment of Benefit

Art.65(10), Art.29 C128

IX-6. Qualifying period

Art.57 ECSS, Art.11 C128

IX-7. Duration of Benefit

Art.58 ECSS, Art.12 C128

IX-8. Rehabilitation services

Art.56(2) ECSS

Art.13 C128

IX-9. Suspension of Benefit

Art.68 ECSS

Art.31-33 C128

IX-10. Right of complaint and appeal

Art.69 ECSS, Art.34 C128

IX-11. Financing and Administration

Art.70,71 ECSS

  Art.30,35,36 C128

Part X. Survivors’ Benefit

X-1. Regulatory framework

Art.59 ECSS, Art.20 C128

X-2. Contingency covered

Art.60 ECSS, Art.21 C128

X-3. Persons Protected

Art.61 ECSS, Art.22 C128

X-4. Level and Calculation of Benefit

Art.62 ECSS, in conjunction with Art. 65

Art.23 C128, in conjunction with Art. 26

X-5. Adjustment of Benefit

Art.65(10), Art.29 C128

X-6. Qualifying period

Art.63 ECSS, Art.24 C128

X-7. Duration of Benefit

Art.64 ECSS, Art.25 C128

X-8. Suspension of Benefit

Art.68 ECSS, Art.31-33 C128

X-9. Right of complaint and appeal

Art.69 ECSS, Art.34 C128

X-10. Financing and Administration

Art.70,71 ECSS         Art.30,35,36 C128

Part XI. Standards to be complied with by periodical payments

Convention No. 102

Art. 65-67 C102

ECSS

Art. 65-67 ECSS

Convention No. 121

Art.19-20 C121

Convention No. 128

Art.26-28 C128

Convention No. 130

Art.22-24 C130

Part XII. Equality of treatment of non-national residents

Convention No. 102

Art.68

Convention No. 121

Art.27

Convention No. 130

Art.32

Convention No. 118

Art.1-11

Part I. General provisions

The Part I “General provisions” comprises the following explanatory and procedural clauses:

§  Articles 1-5 C102

§  Articles 1-5 ECSS

§  Articles 1-3, 5 C121

§  Articles 1-5 C128

§  Articles 1-6 C130

Article 6 of C102/C128/ECSS

For the purpose of compliance with Parts II, III, IV, V, VIII (in so far as it relates to medical care), IX or X of this Convention (Code), a Member (Contracting Party) may take account of protection effected by means of insurance which, although not made compulsory by national laws or regulations for the persons to be protected:

(a) is supervised [subsidised - ECSS] by the public authorities [or, where such insurance is complementary only, is supervised by the public authorities - ECSS] or administered, in accordance with prescribed standards, by joint operation of employers and workers;

(b) covers a substantial part of the persons whose earnings do not exceed those of the skilled manual male employee [determined in accordance with Article 65 - ECSS]; and

(c) complies, in conjunction with other forms of protection, where appropriate, with the relevant provisions of the Convention (Code).

Ø  Draft Resolution CM/ResCSS(2021) ….

on the application of the European Code of Social Security and its Protocol

by Germany (Period from 1 July 2019 to 30 June 2020)

II.            concerning Part XI (Standards to be complied with by periodical payments):

a.             Article 65 of the Code, in conjunction with Article 6, with regard to voluntary insurance schemes, the Committee of Ministers notes the information provided by the Government about the voluntary complementary private schemes “Riester pensions”. The Committee of Ministers notes, as indicated by the Government, that this scheme was introduced in 2001 together with pension reforms aimed at restraining pension increases in order to secure the long-term financial viability of the pension insurance system. More specifically, the introduction of the fully funded private pension scheme was intended to compensate for the decline in the replacement ratio associated with the moderation of pension adjustments in the statutory scheme. The Government also indicated that “Riester pensions” were subsidised by the State and did not provide for benefits defined in relation to previous earnings, but benefits resulting from the contributions paid by employees at a maximum amount of 4 per cent of their wage.

The Committee of Ministers considers that “Riester pensions” can provide a valuable complementary income to retired persons. It recalls however that for such schemes to be taken into account for the purposes of applying the Code, sufficient guarantees shall be provided to ensure compliance with Article 6 of the Code. This Article provides that a Contracting Party may take account of the protection offered by voluntary insurance schemes (e.g. by supplementary pension funds or individual life insurance policy taken from a commercial insurance company) only subject to certain conditions. These conditions have been established with a view to ensuring that the voluntary schemes afford equivalent protection to that offered under statutory schemes in compliance with the objectives of the Code. Article 6 requires in particular that voluntary insurance schemes be subsidised by the public authorities or, where such insurance is complementary only, be supervised by the public authorities or administered by joint operation of employers and workers, that they cover a substantial part of the persons whose earnings do not exceed those of the skilled manual male employee, and that they comply, in conjunction with other forms of protection, where appropriate, with the relevant provisions of the Code. This means that they have to comply with the general standards of the Code as to the scope of protection, the duration of benefits, qualifying period, right of complaint and appeal, finance and administration. The Committee of Ministers recalls that benefits provided under voluntary insurance schemes shall also be regularly adjusted in line with the increase of prices and/or wages, and shall not depend on the surpluses achieved by the fund by investments made (if any), in accordance with Article 65(10) of the Code. The Committee of Ministers further recalls that such benefits shall be periodically paid throughout the contingencies they cover, rather than paid in the form of a lump sum. When the aforementioned conditions are met (e.g. through national standards which may also be imposed as conditions for the exemption of contributions paid to such schemes from income tax), it is possible to take supplementary benefits paid by such voluntary insurance schemes also into account to reach the benefit level prescribed by the Code. The Committee of Ministers therefore once again requests the Government to provide information as indicated below;

The Committee of Ministers decides to invite the Government of Germany:

a.             Article 65 of the Code, in conjunction with Article 6, with regard to voluntary insurance schemes, to provide information in the next report on the compliance of the complementary voluntary private scheme providing for “Riester pensions” with the requirements of Article 6 of the Code, with a view to ascertaining whether they can be taken into account for the purposes of applying Part V of the Code;

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.


Part II. Medical Care

Germany has accepted the obligations resulting from Part II of C102, Part II of C130 and Part II of the ECSS, as amended by its Protocol.

Category

Relevant Articles

Questions raised by the CEACR

II-1. Regulatory framework

Art.7 C102/ECSS

Art.8 C130

II-2. Contingencies covered

Art.8 C102/ECSS

Art.7 C130

II-3. Persons Protected

Art.9 C102/ECSS

Art.10,12 C130

II-4. Types of Benefits

         Art.10(1) C102/ECSS

Art.13 C130

II-5. Cost-sharing

Art.10(2)C102/ECSS

Art.17 C130

II-6. Objectives of Medical Care

Art.10(3) C102/ECSS

Art.9 C130

II-7. Promotion of the general health service

Art.10(4) C102/ECSS

II-8. Qualifying period

Art.11 C102/ECSS

Art.15 C130

II-9. Minimum duration of Benefit

Art.12 C102/ECSS

Art.16 C130

II-10. Suspension of Benefit

Art.69 C102, Art.68 ECSS

Art.28 C128

II-11. Right of complaint and appeal

Art.70 C102, Art. 69 ECSS

Art.29 C130

II-12. Financing and Administration

Art.71,72 C102

Art.70,71 ECSS

                  Art.30,31 C130

List of applicable legislation

 […]

II – 1. Regulatory framework

Article 7. C102 and ECSS

Each Member (Contracting Party) for which this Part of this Convention (Code) is in force shall secure to the persons protected the provision of benefit in respect of a condition requiring medical care of a preventive or curative nature in accordance with the following Articles of this Part.

Article 8. C130

Each Member shall secure to the persons protected, subject to prescribed conditions, the provision of medical care of a curative or preventive nature in respect of the contingency referred to in subparagraph (a) of Article 7.

II - 2. Contingencies covered

Article 8. C102 and ECSS

The contingencies covered shall include any morbid condition, whatever its cause, and pregnancy and confinement and their consequences.

Article 1 (j). C130

The term “sickness” means any morbid condition, whatever its cause.

Article 7. C130

The contingencies covered shall include:

(a) need for medical care of a curative nature and, under prescribed conditions, need for medical care of a preventive nature.

II - 3. Persons protected

Article 9. ECSS, as amended by its Protocol

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 80 per cent of all employees, and also their wives and children; or

(b) prescribed classes of the economically active population, constituting not less than 30 per cent of all residents, and also their wives and children; or

(c) prescribed classes of residents, constituting not less than 65 per cent of all residents.

Article 10. C130

The persons protected in respect of the contingency referred to in subparagraph (a) of Article 7 shall comprise:

(a) all employees, including apprentices, and the wives and children of such employees; or

(b) prescribed classes of the economically active population, constituting not less than 75 per cent of the whole economically active population, and the wives and children of persons in the said classes; or

(c) prescribed classes of residents constituting not less than 75 per cent of all residents.

Article 12. C130

Persons who are in receipt of a social security benefit for invalidity, old age, death of the breadwinner or unemployment, and, where appropriate, the wives and children of such persons, shall continue to be protected, under prescribed conditions, in respect of the contingency referred to in subparagraph (a) of Article 7.

Article 9. C102

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 50 per cent of all employees, and also their wives and children; or

(b) prescribed classes of the economically active population, constituting not less than 20 per cent of all residents, and also their wives and children; or

(c) prescribed classes of residents, constituting not less than 50 per cent of all residents.

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.

II - 4. Types of benefit

§1. Article 10. ECSS, as amended by its Protocol

The benefit shall include at least:

(a)    in the case of a morbid condition:

(i)        care by general practitioners, including domiciliary visiting, and care by specialists in accordance with prescribed conditions;

(ii)      hospital care including maintenance, care by general practitioners or specialists as required, nursing and all auxiliary services required;

(iii)    all necessary non-proprietary pharmaceutical supplies and proprietary preparations regarded as essential; and

(iv)     conservative dental care for the children protected; and

(b)    in the case of pregnancy, confinement and their consequences:

(i)        pre-natal, confinement and post-natal care either by medical practitioners or by qualified midwives;

(ii)      hospitalisation where necessary; and

(iii)    pharmaceutical supplies.

Article 13. C130

The medical care referred to in Article 8 shall comprise at least:

(a) general practitioner care, including domiciliary visiting;

(b) specialist care at hospitals for in-patients and out-patients, and such specialist care as may be available outside hospitals;

(c) the necessary pharmaceutical supplies on prescription by medical or other qualified practitioners;

(d) hospitalisation where necessary;

(e) dental care, as prescribed; and

(f) medical rehabilitation, including the supply, maintenance and renewal of prosthetic and orthopaedic appliances, as prescribed.

§1. Article 10. ECSS

The benefit shall include at least:

(a) in case of a morbid condition:

(i) general practitioner care, including domiciliary visiting;

(ii) specialist care at hospitals for in patients and out patients, and such specialist care as may be available outside hospitals;

(iii) the essential pharmaceutical supplies as prescribed by medical or other qualified practitioners; and

(iv) hospitalisation where necessary; and

(b) in case of pregnancy and confinement and their consequences,

(i) pre-natal, confinement and post-natal care either by medical practitioners or by qualified midwives; and

(ii) hospitalisation where necessary.

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.

 

II - 5. Cost-sharing

§2. Article 10. ECSS, as amended by its Protocol

The beneficiary or his breadwinner may be required to share in the costs of the medical care which the beneficiary receives:

(a)      in case of morbid condition, provided that the rules concerning such cost-sharing shall be so designed as to avoid hardship, and that the part of the cost paid by the beneficiary or breadwinner shall not exceed:

(i)       for care by general practitioners and specialists outside hospital wards: 25 per cent;

(ii)      for hospital care: 25 per cent;

(iii)    for pharmaceutical supplies: 25 per cent on the average;

(iv)     for conservative dental care: 33 1/3 per cent;

(b)      in case of pregnancy, confinement and their consequences, in respect of pharmaceutical supplies only for which the part of the cost paid by the patient or breadwinner shall not exceed 25 per cent on the average; the rules concerning such cost-sharing shall be so designed as to avoid hardship;

(c) where cost-sharing takes the form of a fixed sum in respect of each case or course of treatment or each prescription of pharmaceutical supplies, 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 shall not exceed the specified percentage of the total cost of that type of care within a given period.

Article 17. C130

Where the legislation of a Member requires the beneficiary or his breadwinner to share in the cost of the medical care referred to in Article 8, the rules concerning such cost sharing shall be so designed as to avoid hardship and not to prejudice the effectiveness of medical and social protection.

§2. Article 10. C102

The beneficiary or his breadwinner may be required to share in the cost of the medical care the beneficiary receives in respect of a morbid condition; the rules concerning such cost-sharing shall be so designed as to avoid hardship.

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.

II - 6. Objectives of Medical Care

§3. Article 10. C102 and ECSS

The benefit provided in accordance with this Article shall be afforded with a view to maintaining, restoring or improving the health of the person protected and his ability to work and to attend to his personal needs.

Article 9. C130

The medical care referred to in Article 8 shall be afforded with a view to maintaining, restoring or improving the health of the person protected and his ability to work and to attend to his personal needs.

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.

II - 7. Promotion of the general health service

§4. Article 10. C102 and ECSS

The institutions or Government departments administering the benefit shall, by such means as may be deemed appropriate, encourage the persons protected to avail themselves of the general health services placed at their disposal by the public authorities or by other bodies recognised by the public authorities.

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)

II - 8. Qualifying period

§1(f) Article 1 C102, §1(i) Article 1 ECSS, C130

The term qualifying period means a period of contribution, or a period of employment, or a period of residence, or any combination thereof, as may be prescribed.

Article 11. C102 and ECSS

The benefit specified in Article 10 shall, in a contingency covered, be secured at least to a person protected who has completed, or whose breadwinner has completed, such qualifying period as may be considered necessary to preclude abuse.

Article 15. C130

Where the legislation of a Member makes the right to the medical care referred to in Article 8 conditional upon the fulfilment of a qualifying period by the person protected or by his breadwinner, the conditions governing the qualifying period shall be such as not to deprive of the right to benefit persons who normally belong to the categories of persons protected.

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.

II - 9. Minimum duration of benefit

Article 12. ECSS, as amended by its Protocol

The benefits specified in Article 10 shall be granted throughout the contingency covered, except that hospital care may be limited to 52 weeks in each case or to 78 weeks in any consecutive period of three years.

Article 16. C130

1. The medical care referred to in Article 8 shall be provided throughout the contingency.

2. Where a beneficiary ceases to belong to the categories of persons protected, further entitlement to medical care for a case of sickness which started while he belonged to the said categories may be limited to a prescribed period which shall not be less than 26 weeks: Provided that the medical care shall not cease while the beneficiary continues to receive a sickness benefit.

3. Notwithstanding the provisions of paragraph 2 of this Article, the duration of medical care shall be extended for prescribed diseases recognised as entailing prolonged care.

Article 12. C102

The benefit specified in Article 10 shall be granted throughout the contingency covered, except that, in case of a morbid condition, its duration may be limited to 26 weeks in each case, but benefit shall not be suspended while a sickness benefit continues to be paid, and provision shall be made to enable the limit to be extended for prescribed diseases recognised as entailing prolonged care.

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.

II - 10. Suspension of benefit

Article 69. C102, Article 68. ECSS

A benefit to which a person protected would otherwise be entitled in compliance with any of Parts II to X of this Convention may be suspended to such extent as may be prescribed--

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is maintained at public expense, or at the expense of a social security institution or service, subject to any portion of the benefit in excess of the value of such maintenance being granted to the dependants of the beneficiary;

(c) as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, and during any period in respect of which he is indemnified for the contingency by a third party, subject to the part of the benefit which is suspended not exceeding the other benefit or the indemnity by a third party;

(d) where the person concerned has made a fraudulent claim;

(e) where the contingency has been caused by a criminal offence committed by the person concerned;

(f) where the contingency has been caused by the wilful misconduct of the person concerned;

(g) in appropriate cases, where the person concerned neglects to make use of the medical or rehabilitation services placed at his disposal or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries;

Article 28. C130

1. A benefit to which a person protected would otherwise be entitled in compliance with this Convention may be suspended to such extent as may be prescribed:

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is being indemnified for the contingency by a third party, to the extent of the indemnity;

(c) where the person concerned has made a fraudulent claim;

 (d) where the contingency has been caused by a criminal offence committed by the person concerned;

(e) where the contingency has been caused by the serious and wilful misconduct of the person concerned;

(f) where the person concerned, without good cause, neglects to make use of the medical care or the rehabilitation services placed at his disposal, or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries;

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.

II - 11. Right of complaint and appeal

Article 70. C102, Article 69. ECSS

1. Every claimant shall have a right of appeal in case of refusal of the benefit or complaint as to its quality or quantity.

2. Where in the application of this Convention (Code) a government department responsible to a legislature is entrusted with the administration of medical care, the right of appeal provided for in paragraph 1 of this article may be replaced by a right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

3. Where a claim is settled by a special tribunal established to deal with social security questions and on which the persons protected are represented, no right of appeal shall be required.

Article 29. C130

1. Every claimant shall have a right of appeal in the case of refusal of the benefit or complaint as to its quality or quantity.

2. Where in the application of this Convention a government department responsible to a legislature is entrusted with the administration of medical care, the right of appeal provided for in paragraph 1 of this Article may be replaced by a right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

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.

II - 12. Financing and Administration

See under Part XIII-3

Article 30. C130

1. Each Member shall accept general responsibility for the due provision of the benefits provided in compliance with this Convention and shall take all measures required for this purpose.

2. Each Member shall accept general responsibility for the proper administration of the institutions and services concerned in the application of this Convention.

Article 31. C130

Where the administration is not entrusted to an institution regulated by the public authorities or to a government department responsible to a legislature:

(a) representatives of the persons protected shall participate in the management under prescribed conditions;

(b) national legislation shall, where appropriate, provide for the participation of representatives of employers;

(c) national legislation may likewise decide as to the participation of representatives of the public authorities.


Part III. Sickness Benefit

Germany has accepted the obligations resulting from Part III of C130 and Part III of the ECSS, as amended by its Protocol.

Category

Relevant Articles

Questions raised by the CEACR

III-1. Regulatory framework

Art.13 ECSS, Art.18 C130

III-2. Contingencies covered

Art.14 ECSS, Art.7(b) C130

III-3. Persons Protected

Art.15 ECSS, Art.19 C130

III-4. Level and Calculation of Benefit

Art.16 ECSS, Art.21C130

III-5. Qualifying period

Art.17 ECSS, Art.25 C130

III-6. Minimum duration of Benefit

Art.18 ECSS, Art.26 C130

III-7. Funeral Benefit

Art.27 C130

III-8. Suspension of Benefit

Art.68 ECSS, Art.28 C130

III-9. Right of complaint and appeal

Art.69 ECSS, Art.29 C130

III-10. Financing and Administration

Art.70,71 ECSS

Art.30,31,33 C130

List of applicable legislation

[…]

III - 1. Regulatory framework

Article 13. ECSS

Each Member (Contracting Party) for which this Part of this Convention (Code) is in force shall secure to the persons protected the provision of sickness benefit in accordance with the following Articles of this Part.

Article 18. C130

Each Member shall secure to the persons protected, subject to prescribed conditions, the provision of sickness benefit in respect of the contingency referred to in subparagraph (b) of Article 7.

III - 2. Contingency covered

Article 14. ECSS

The contingency covered shall include incapacity for work resulting from a morbid condition and involving suspension of earnings, as defined by national laws or regulations.

Article 1 (j). C130

The term “sickness” means any morbid condition, whatever its cause.

Article 7 (b). C130

The contingencies covered shall include

(b) incapacity for work resulting from sickness and involving suspension of earnings, as defined by national legislation.

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.

III - 3. Persons protected

Article 15. ECSS, as amended by its Protocol

The persons protected shall comprise:

(a)prescribed classes of employees, constituting not less than 80 per cent of all employees; or

(b)prescribed classes of the economically active population constituting not less than 30 per cent of all residents; or

(c) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

Article 19. C130

The persons protected in respect of the contingency specified in subparagraph (b) of Article 7 shall comprise:

 (a) all employees, including apprentices; or

(b) prescribed classes of the economically active population, constituting not less than 75 per cent of the whole economically active population; or

(c) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 24.

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.

III - 4. Level and calculation of benefit

Article 16. ECSS

1. Where classes of employees or classes of the economically active population are protected, the benefit shall be a periodical payment calculated in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66.

2. Where all residents whose means during the contingency do not exceed prescribed limits are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 67; [provided that a prescribed benefit shall be guaranteed, without means test, to the prescribed classes of persons determined in accordance with Article 15. a or b - ECSS].

Article 21. C130

The sickness benefit referred to in Article 18 shall be a periodical payment and shall:

(a) where employees or classes of the economically active population are protected, be calculated in such a manner as to comply either with the requirements of Article 22 or with the requirements of Article 23;

(b) where all residents whose means during the contingency do not exceed prescribed limits are protected, be calculated in such a manner as to comply with the requirements of Article 24.

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.

III - 5. Qualifying period

Article 17. ECSS

The benefit specified in Article 16 shall, in a contingency covered, be secured at least to a person protected who has completed such qualifying period as may be considered necessary to preclude abuse.

Article 25. C130

Where the legislation of a Member makes the right to the sickness benefit referred to in Article 18 conditional upon the fulfilment of a qualifying period by the person protected, the conditions governing the qualifying period shall be such as not to deprive of the right to benefit persons who normally belong to the categories of persons protected.

§1(i) Article 1. ECSS, C130

The term qualifying period means a period of contribution, or a period of employment, or a period of residence, or any combination thereof, as may be prescribed.

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.

III - 6. Minimum duration of benefit

Article 18. ECSS, as amended by its Protocol

The benefit specified in Article 16 shall be granted throughout the contingency, except that it need not be paid for the first three days of suspension of earnings and may be limited to 52 weeks in each case of sickness or to 78 weeks in any consecutive period of three years.

Article 26. C130

1. The sickness benefit referred to in Article 18 shall be granted throughout the contingency: Provided that the grant of benefit may be limited to not less than 52 weeks in each case of incapacity, as prescribed.

2. Where a declaration made in virtue of Article 2 is in force, the grant of the sickness benefit referred to in Article 18 may be limited to not less than 26 weeks in each case of incapacity, as prescribed.

3. Where the legislation of a Member provides that sickness benefit is not payable for an initial period of suspension of earnings, such period shall not exceed three days.

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).

III - 7. Funeral benefit

Article 27. C130

1. In the case of the death of a person who was in receipt of, or qualified for, the sickness benefit referred to in Article 18, a funeral benefit shall, under prescribed conditions, be paid to his survivors, to any other dependants or to the person who has borne the expense of the funeral.

2. A member may derogate from the provision of paragraph 1 of this Article where:

(a) it has accepted the obligations of Part IV of the Invalidity, Old-Age and Survivors' Benefits Convention, 1967;

(b) it provides in its legislation for cash sickness benefit at a rate of not less than 80 per cent of the earnings of the persons protected; and

(c) the majority of persons protected are covered by voluntary insurance which is supervised by the public authorities and which provides a funeral grant.

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.

III - 8. Suspension of benefit

Article 68. ECSS

A benefit to which a person protected would otherwise be entitled in compliance with any of Parts II to X of this Convention may be suspended to such extent as may be prescribed--

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is maintained at public expense, or at the expense of a social security institution or service, subject to any portion of the benefit in excess of the value of such maintenance being granted to the dependants of the beneficiary;

(c) as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, and during any period in respect of which he is indemnified for the contingency by a third party, subject to the part of the benefit which is suspended not exceeding the other benefit or the indemnity by a third party;

(d) where the person concerned has made a fraudulent claim;

(e) where the contingency has been caused by a criminal offence committed by the person concerned;

(f) where the contingency has been caused by the wilful misconduct of the person concerned;

(g) in appropriate cases, where the person concerned neglects to make use of the medical or rehabilitation services placed at his disposal or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries;

Article 28. C130

1. A benefit to which a person protected would otherwise be entitled in compliance with this Convention may be suspended to such extent as may be prescribed:

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is being indemnified for the contingency by a third party, to the extent of the indemnity;

(c) where the person concerned has made a fraudulent claim;

 (d) where the contingency has been caused by a criminal offence committed by the person concerned;

(e) where the contingency has been caused by the serious and wilful misconduct of the person concerned;

 (f) where the person concerned, without good cause, neglects to make use of the medical care or the rehabilitation services placed at his disposal, or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries;

 (g) in the case of the sickness benefit referred to in Article 18, as long as the person concerned is maintained at public expense or at the expense of a social security institution or service; and

 (h) in the case of the sickness benefit referred to in Article 18, as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, subject to the part of the benefit which is suspended not exceeding the other benefit.

2. In the cases and within the limits prescribed, part of the benefit otherwise due shall be paid to the dependants of the person concerned.

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

III - 9. Right of complaint and appeal

Article 69. ECSS

1. Every claimant shall have a right of appeal in case of refusal of the benefit or complaint as to its quality or quantity.

2. Where in the application of this Convention (Code) a government department responsible to a legislature is entrusted with the administration of medical care, the right of appeal provided for in paragraph 1 of this article may be replaced by a right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

3. Where a claim is settled by a special tribunal established to deal with social security questions and on which the persons protected are represented, no right of appeal shall be required.

Article 29. C130

Every claimant shall have a right of appeal in the case of refusal of the benefit or complaint as to its quality or quantity.

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.

III - 10. Financing and Administration

See under Part XIII-3


Part IV. Unemployment Benefit

Germany has accepted the obligations resulting from Part IV of C102 and Part IV of the ECSS, as amended by its Protocol.

Category

Relevant Articles

Questions raised by the CEACR

IV-1. Regulatory framework

Art.19 C102/ECSS

IV-2. Contingency covered

Art.20 C102/ECSS

IV-3. Persons Protected

Art.21 C102/ECSS

IV-4. Level and Calculation of Benefit

Art.22 C102/ECSS

IV-5. Qualifying period

Art.23 C102/ECSS

IV-6. Minimum duration of Benefit

Art.24(1,2) C102

Art.24(1-3) ECSS

IV - 7. Waiting period

Art.24(3,4) C102

Art.24(4,5) ECSS

IV - 8. Promotion of employment

Art.24(6) ECSS

IV-9. Suspension of Benefit

Art.69 C102, Art.68 ECSS

IV-10. Right of complaint and appeal

Art.70 C102, Art.69 ECSS

IV-11. Financing and Administration

Art.71, 72 C102 

Art.70, 71 ECSS

List of applicable legislation

[…]

IV - 1. Regulatory framework

Article 19. C102 and ECSS

Each Member (Contracting Party) for which this Part of this Convention (Code) is in force shall secure to the persons protected the provision of unemployment benefit in accordance with the following Articles of this Part.

IV - 2. Contingency covered

Article 20. C102 and ECSS

The contingency covered shall include suspension of earnings, as defined by national laws or regulations, due to inability to obtain suitable employment in the case of a person protected who is capable of, and available for, work.

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.

·        

IV - 3. Persons protected

Article 21. C102 and ECSS, as amended by its Protocol

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 50 per cent [55 per cent – Protocol] of all employees; or

(b) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

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.

Year

2015

2016

2017

2018

2019

2020

A. Protected (1,000 Empl.)

30,854

31,537

32,266

32,992

33,537

33,577

B. Total (1,000 Empl.)

38,710

39,320

39,989

40,645

41,117

40,784

C. Share Protected

79.7%

80.2%

80.7%

81.2%

81.6%

82.3%

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.

IV – 4. Level and calculation of benefit

Article 22. C102 and ECSS

1. Where classes of employees are protected, the benefit shall be a periodical payment calculated in such manner as to comply either with the requirements of Article 65 or with the requirements of Article 66.

2. Where all residents whose means during the contingency do not exceed prescribed limits are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 67. [provided that a prescribed benefit shall be guaranteed, without means test, to the prescribed classes of employees determined in accordance with Article 21.a. - ECSS]

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.

IV – 5. Qualifying period

§1(f) Article 1 C102, §1(i) Article 1 ECSS

The term qualifying period means a period of contribution, or a period of employment, or a period of residence, or any combination thereof, as may be prescribed.

Article 23. C102 and ECSS

The benefit specified in Article 22 shall, in a contingency covered, be secured at least to a person protected who has completed such qualifying period as may be considered necessary to preclude abuse.

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.

IV - 6. Minimum duration of benefit

Article 24. C102 and ECSS, as amended by its Protocol

1. The benefit specified in Article 22 shall be granted throughout the contingency, except that its duration may be limited,

(a) where classes of employees are protected, to 13 weeks within a period of 12 months, [21 weeks within a period of 12 months, or to 21 weeks in each case of suspension of earnings – Protocol]; or

 (b) [2 - Protocol] where all residents whose means during the contingency do not exceed prescribed limits are protected, to 26 weeks within a period of 12 months; [the benefit specified in Article 22 shall be granted throughout the contingency. Provided that the duration of the prescribed benefit guaranteed without a means test may be limited in accordance with paragraph 1 of this Article - Protocol].

2. [3 – Protocol] Where national laws or regulations provide that the duration of the benefit shall vary with the length of the contribution period and/or the benefit previously received within a prescribed period, the provisions of paragraph 1 of this article shall be deemed to be fulfilled if the average duration of benefit is at least 13 weeks [21 weeks – Protocol] within a period of 12 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)).

After compulsorily insured employment of …..months in total

and upon completion of age ….

........ months

12

16

20

24

6 (24 weeks)

8

10

12

30

36

48

50

55

58

15

18

24

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.

IV - 7. Waiting period

§4§5 Article 24.  Protocol to the ECSS

4.     The benefit need not be paid:

(a) for the first three days in each case of suspension of earnings, counting the days of unemployment before and after temporary employment lasting not more than a prescribed period as part of the same case of suspension of earnings; or

(b) for the first six days within a period of twelve months.

5.     In the case of seasonal workers, the duration of the benefit and the waiting period may be adapted to their conditions of employment.

§3§4 Article 24. C102

3. The benefit need not be paid for a waiting period of the first seven days in each case of suspension of earnings, counting days of unemployment before and after temporary employment lasting not more than a prescribed period as part of the same case of suspension of earnings.

4. In the case of seasonal workers the duration of the benefit and the waiting period may be adapted to their conditions of employment.

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.

IV - 8. Promotion of employment

§6 Article 24. ECSS, as amended by its Protocol

Measures shall be taken to maintain a high and stable level of employment in the country, and appropriate facilities shall be provided to assist unemployed persons to obtain suitable new work including placement services, vocational training courses, assistance in their transfer to another district when necessary to find suitable employment, and related services.

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.

IV - 9. Suspension of benefit

Article 69. C102, Article 68. ECSS

A benefit to which a person protected would otherwise be entitled in compliance with any of Parts II to X of this Convention may be suspended to such extent as may be prescribed--

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is maintained at public expense, or at the expense of a social security institution or service, subject to any portion of the benefit in excess of the value of such maintenance being granted to the dependants of the beneficiary;

(c) as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, and during any period in respect of which he is indemnified for the contingency by a third party, subject to the part of the benefit which is suspended not exceeding the other benefit or the indemnity by a third party;

(d) where the person concerned has made a fraudulent claim;

(e) where the contingency has been caused by a criminal offence committed by the person concerned;

(f) where the contingency has been caused by the wilful misconduct of the person concerned;

 (h) in the case of unemployment benefit, where the person concerned has failed to make use of the employment services placed at his disposal;

(i) in the case of unemployment benefit, where the person concerned has lost his employment as a direct result of a stoppage of work due to a trade dispute, or has left it voluntarily without just cause; and

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).

IV – 10. Right of complaint and appeal

§1§3. Article 70. C102, Article 69. ECSS

1. Every claimant shall have a right of appeal in case of refusal of the benefit or complaint as to its quality or quantity.

3. Where a claim is settled by a special tribunal established to deal with social security questions and on which the persons protected are represented, no right of appeal shall be required.

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).

IV - 11. Financing and Administration

See under Part XIII-3


Part V. Old-Age Benefit

Germany has accepted the obligations resulting from Part III of C128 and Part V of the ECSS, as amended by its Protocol.

Category

Relevant Articles

Questions raised by the CEACR

I. General provisions

Art. 6 C102/ECSS,

in conjunction with Part V (Old-Age benefit)

V-1. Regulatory framework

Art.25 ECSS

Art.14 C128

V-2. Contingency covered

Art.26 ECSS

Art.15 C128

V-3. Persons Protected

Art.27 ECSS

Art.16 C128

V-4. Level and Calculation of Benefit

Art.28 ECSS, in conjunction with Art. 65

Art.17 C128, in conjunction with Art. 26

V-5. Adjustment of Benefit

Art.65(10) ECSS, Art.29 C128

V-6. Qualifying period

Art.29 ECSS, Art.18 C128

V-7. Duration of Benefit

Art.30 ECSS, Art.19 C128

V-8. Suspension of Benefit

Art.31 C128, Art.68 ECSS

Art.32,33 C128

V-9. Right of complaint and appeal

Art.69 ECSS, Art.34 C128

V-10. Financing and Administration

Art.70,71 ECSS

Art.35,36 C128, Art.30 C128

List of applicable legislation

[…]

V - 1. Regulatory framework

Article 25. ECSS

Each Member (Contracting Party) for which this part of this Convention (Code) is in force shall secure to the persons protected the provision of old‑age benefit in accordance with the following Articles of this Part.

Article 14. C128

Each Member for which this Part of this Convention is in force shall secure to the persons protected the provision of old-age benefit in accordance with the following Articles of this Part.

V - 2. Contingency covered

Article 26. ECSS, as amended by its Protocol

1. The contingency covered shall be survival beyond a prescribed age.

2. The prescribed age shall be not more than 65 years or than such higher age that the number of residents having attained that age is not less than 10 per cent of the number of residents under that age but over 15 years. Provided that, where prescribed classes of employees only are protected, the prescribed age shall be not more than 65 years.

3. National laws or regulations may provide that the benefit of a person otherwise entitled to it may be suspended if he is engaged in any prescribed gainful activity, or that the benefit, if contributory, may be reduced whenever the earnings of the beneficiary exceed a prescribed amount.

Article 26. C102

1. The contingency covered shall be survival beyond a prescribed age.

2. The prescribed age shall be not more than 65 years or such higher as may be fixed by the competent authority with due regard to the working ability of elderly persons in the country concerned.

Ø 3. National laws or regulations may provide that the benefit of a person otherwise entitled to it may be suspended if such person is engaged in any prescribed gainful activity or that the benefit, if contributory, may be reduced where the earnings of the beneficiary exceed a prescribed amount and, if non-contributory, may be reduced where the earnings of the beneficiary or his other means or the two taken together exceed a prescribed amount.

Article 15. C128

1. The contingency covered shall be survival beyond a prescribed age.

Ø 2. The prescribed age shall be not more than 65 years or such higher age as may be fixed by the competent authority with due regard to demographic, economic and social criteria, which shall be demonstrated statistically.

3. If the prescribed age is 65 years or higher, the age shall be lowered, under prescribed conditions, in respect of persons who have been engaged in occupations that are deemed by national legislation, for the purpose of old-age benefit, to be arduous or unhealthy.

Ø  Draft Resolution CM/ResCSS(2021) ….

on the application of the European Code of Social Security and its Protocol

by Germany (Period from 1 July 2019 to 30 June 2020)

I.             concerning Part V (Old-age benefit), Article 26(2) of the Code, as amended by the Protocol, Pensionable age, in its previous comments, the Committee of Ministers observed that, since 1 January 2012, the pensionable age for statutory old-age pension had gradually increased to 67 years for persons born between 1947 and 1964 and that Article 26(2) of the Code, as amended by its Protocol, did not allow an increase of pensionable age beyond 65 years where, as in Germany, prescribed classes of employees only are protected by the statutory pension scheme.

The Committee of Ministers noted the explanations provided by the Government which put forward the reasons for increasing the retirement age, as follows: (1) coping with demographic change is a key challenge for Germany, where persistently low birth rates and longer life expectancy are causing major shifts in the age structure of the population; (2) in the future, more older and fewer younger people will be available on the labour market; (3) at the same time, there will be significantly more pension recipients and fewer contributors; and (4) 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.

The Government further explained that, with a view to strengthening the financial underpinnings of statutory pensions and in order to counter the looming shortage of skilled workers, the German Bundestag decided in 2007 to lift the standard retirement age for statutory pension insurance from 65 to 67. However, in order 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, and starting in 2024, it will increase by two months. The new standard retirement age of 67 years will thus only apply from 2029 onwards (for people born in 1964). In 2019, the standard retirement age will be increased by another month for the eighth time, reaching 65 years and eight months. The Committee of Ministers also noted the Government’s indication that older people can continue to tailor their employment to their personal preferences and that it is possible to retire before reaching the standard retirement age as well as to work beyond the retirement age, under the Flexible Pensions Act (Flexirentengesetz).

The Committee of Ministers further noted the Government’s indication that the gradual increase of the standard retirement age to 67 years is not limited to persons covered by statutory pension insurance (gesetzliche Rentenversicherung), as 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 by the special schemes for civil servants are subject to the same increase.

The Committee of Ministers also noted that, according to the Government, the long period of gradual increases of the standard retirement age allows for adapting the working conditions to ageing workforces, i.e. 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. The Government referred to the progress that 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, where, between 2000 and 2017, the employment rate of persons aged 60–64 has increased more strongly in Germany than in any other EU country. Finally, the Committee of Ministers noted that persons with a long insurance record of at least 35 or 45 years are allowed to retire about two years earlier than the normal retirement age without deductions.

The Committee of Ministers once again recalls that the Protocol to the Code establishes a strict rule in Article 26(2) of the Code as regards the highest acceptable age at which members of a social insurance scheme like Germany’s shall be entitled to claim an old-age pension by stipulating that in schemes, which protect prescribed classes of employees only, the prescribed (pensionable) age shall be not more than 65 years;

The Committee of Ministers decides to invite the Government of Germany:

I.             concerning Part V (Old-age benefit), Article 26(2) of the Code, as amended by the Protocol, Pensionable age, to indicate in its next report the measures taken to fulfil the requirement of Article 26(2) of the Code;

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.

Ø  Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128) (Ratification: 1971)

Old-age benefit (Part V of the CR), Article 15(2) of Convention No. 128. Pension age.The Committee notes that, since 1 January 2012, pension age for statutory old-age pension has gradually increased to 67 for people born in the years 1947–64. This measure has been taken as a result of demographic trends characterized by an increasing life expectancy and low birth rates. The Committee requests the Government to provide information on the demographic, economic and social criteria (demonstrated statistically) justifying the increase of the statutory pension age beyond 65 years.

Please provide a reply to the question:

[…]

Men

Women

Total

2000

27.2%

12.1%

19.6%

2001

28.4%

13.4%

20.8%

2002

30.2%

14.5%

22.2%

2003

31.2%

15.9%

23.5%

2004

33.2%

17.6%

25.3%

2005

35.9%

20.7%

28.2%

2006

37.7%

21.9%

29.7%

2007

41.2%

24.9%

32.9%

2008

43.2%

27.7%

35.1%

2009

47.0%

30.4%

38.6%

2010

49.4%

33.1%

41.4%

2011

52.4%

36.5%

44.3%

2012

54.9%

38.8%

46.6%

2013

57.7%

42.8%

50.0%

2014

59.4%

46.2%

52.6%

2015

59.1%

47.9%

53.3%

2016

61.5%

50.8%

56.0%

2017

63.7%

53.5%

58.4%

2018

65.4%

55.4%

60.3%

2019

66.6%

57.1%

61.8%

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.

V - 3. Persons protected

Article 27. ECSS, as amended by its Protocol

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 80 per cent of all employees; or

(b) prescribed classes of the economically active population, constituting not less than 30 per cent of all residents; or

(c) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

Article 16. C128

Ø 1. The persons protected shall comprise:

(a) all employees, including apprentices; or

(b) prescribed classes of the economically active population, constituting not less than 75 per cent. of the whole economically active population; or

(c) all residents or residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 28.

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)

1.

Number of protected employees (in 1000s)

2015

2016

2017

2018

2019

2020

a)  Pension insurance

35673

36308

36967

37612

38053

37583

 

b)  Special system for civil servants

2014

2010

2014

2025

2038

2045

 

c)  Total

37687

38319

38981

39637

40091

39628

 

2.

Total number of employees
(in 1000s)

38632

39218

39868

40504

40971

40700

 

3.

Number of protected employees as percentage of total number 

of employees 

97.6

97.7

97.8

97.9

97.9

97.4

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.

V - 4. Level and calculation of benefit

Article 28. ECSS, as amended by its Protocol

The benefit shall be a periodical payment calculated as follows:

(a) where classes of employees or classes of the economically active population are protected, in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66;

(b) where all residents whose means during the contingency do not exceed prescribed limits are protected, in such a manner as to comply with the requirements of Article 67. Provided that a prescribed benefit shall be guaranteed without means tests to the prescribed classes of persons determined in accordance with sub-paragraphs a or b of Article 27, subject to qualifying conditions not more stringent than those specified in paragraph 1 of Article 29.

Article 17. C128

The old-age benefit shall be a periodical payment calculated as follows:

(a) where employees or classes of the economically active population are protected, in such a manner as to comply either with the requirements of Article 26 or with the requirements of Article 27;

(b) where all residents or all residents whose means during the contingency do not exceed prescribed limits are protected, in such a manner as to comply with the requirements of Article 28.

Ø  Draft Resolution CM/ResCSS(2021) ….

on the application of the European Code of Social Security and its Protocol

by Germany (Period from 1 July 2019 to 30 June 2020)

II.            concerning Part XI (Standards to be complied with by periodical payments):

b.            Article 65 of the Code, in conjunction with Articles 29(1) and (2), 57(1) and (2), and 63(1) and (2) of the Code, with regard to the replacement rate of old-age, invalidity and survivors’ benefits, in its previous comments, the Committee of Ministers noted that the calculations of the old-age, invalidity and survivors’ benefits’ replacement rates provided by the Government included a “personal provision for old-age” benefit provided by private insurance companies or other financial institutions proposing so-called “Riester pension contracts”, added to the benefits provided by the statutory pension scheme. The Committee of Ministers recalled that to take into account “Riester pensions” in the calculation of benefits’ replacement rates under Article 65 of the Code, these should meet the requirements of Article 6 and referred the Government to its request in this regard. The Committee of Ministers notes the information provided by the Government, according to which, a standard beneficiary, for the purpose of applying Article 65 of the Code, is a skilled manual male employee with 30 years of contributions, i.e. a person who has acquired 37.5 personal earnings points with respect to old-age pension whose earnings are equal to 125 per cent of the average earnings. The Committee of Ministers further notes the absence of reply by the Government to the request made in its previous comments and once again requests the Government to provide the calculation as indicated below.

The Committee of Ministers also notes that, once again, the Government’s calculations of the benefits’ replacement rate compare the net amount of earnings of a skilled manual male employee with the corresponding benefits that a standard beneficiary would receive, instead of the gross amount of earnings. In its previous comments, the Committee of Ministers observed that this would be possible, provided that the social security contributions and the income tax to be borne by the standard beneficiary were deducted on both sides of the equation. The Committee of Ministers further noted, however, that no income tax was deducted from the benefits payable to a standard beneficiary in the Government’s calculations, even though benefits in Germany were (in principle) also subject to taxation. The Committee of Ministers therefore once again requests the Government to provide further information as indicated below;

The Committee of Ministers decides to invite the Government of Germany:

b.            Article 65 of the Code, in conjunction with Articles 29(1) and (2), 57(1) and (2), and 63(1) and (2) of the Code, with regard to the replacement rate of old-age, invalidity and survivors’ benefits, to provide, in its next report, the calculation on the replacement rate of standard statutory pensions for a standard beneficiary, as defined under Article 65 of the Code, without adding any benefits derived from complementary voluntary private schemes. The Government is also requested to indicate whether a person in the situation of a standard beneficiary would be liable to pay income tax and, in the affirmative, to deduct such a tax also from the benefit calculation, in line with Article 65 of the Code.

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.

Report form for the ECSS:

1.       If recourse is had to subparagraph a) of Article 28 of the 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 the ECSS.

2.       Please furnish information under this Article as follows:

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

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

For Article 65 of the 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.

The following four factors are relevant to the pension calculation:

-     earnings points

-     the personal age factor relevant to the respective earnings points (the product of “earnings points multiplied by age factor” are the personal earnings points)

-    the pension type factor (e.g for old-age pensions it is 1.0 in the general pension insurance system, and 1.3333 in the miners' pension insurance system)

-     the current pension value (34.19 euros for the old Länder, and 33.23 euros for the new Länder since 1 July 2020).

The pension formula is as follows: Personal earnings points x pension type factor x current pension value = gross monthly pension.

The earnings points are the ratio between the individual's earnings in a year of coverage and the average earnings of all insured persons in the same calendar year. With an average earner, this value is one earnings point per year. The age factor is determined by the date on which an old-age pension starts. Where an insured person makes use of the possibility of drawing an early old-age pension, the resulting prolonged period of pension receipt is offset by the age factor, which is one for a pension not claimed earlier, being reduced by 0.003 points for each month of retirement before the standard pension age. This leads to an 0.3% reduction of the old-age pension for each month of retirement before the prescribed pension age. The pension type factor which varies depending on the individual types of pensions takes account of the intended protection purpose of the pension type in relation to the old-age pension. The current pension value is the monthly Euro-equivalent of one earnings point at the time of the calculation of the old-age pension.

Apart from the contribution periods, certain non-contributory periods are also taken into account in the calculation of a pension: Periods in which insured persons were prevented from paying compulsory contributions, such as periods of military service (substitute periods) and periods for which it was no longer possible to pay any contributions because of early invalidity/death (added periods) are taken into consideration and serve to increase the pension. Further non-contributory periods are the credited periods. These periods distinguish between credited periods that are valued (e.g. attendance at a technical college, maternity protection), which serve to increase the pension, and credited periods that are not valued (e.g. unemployment, incapacity for work), which do not directly serve to increase the pension.

On 1 January 2021 an earnings points supplement was introduced in the statutory pension insurance for persons with a long insurance record (basic pension or “Grundrente” in German). The pension is increased by a supplement provided the person has completed at least 33 years of basic pension periods (above all compulsory contributions from employment, child-raising periods and care-giving periods). The earnings points (EP) that have been earned from “basic pension assessment periods” are the basis for the calculation of the supplement. This includes only those basic pension periods that correspond to a value of at least 0.025 EP/month (0.3 EP/year). This corresponds to 30 percent of the average earnings in the respective year. If somebody has completed 35 years of basic pension periods and the average value from all “basic pension assessment periods” is under 80 percent of the average earnings (= 0.8 EP/year), the supplement is calculated for a maximum period of 35 years of basic pension assessment periods. In the transition range between 33 and 35 years, an increasing basic pension supplement is calculated. The basic pension supplement is granted on the basis of the taxable income following an income test.

In the old Länder (West) the current pension value is

01/07/2016                         30.45 euros

01/07/2017                         31.03 euros

01/07/2018                         32.03 euros

01/07/2019                         33.05 euros

01/07/2020                         34.19 euros

In the new Länder (East) the current pension value is

01/07/2016                         28.66 euros

01/07/2017                         29.69 euros

01/07/2018                         30.69 euros

01/07/2019                         31.89 euros

01/07/2020                         33.23 euros

In the old Länder (West), the contribution assessment ceiling is

General pension insurance system

Miners'

pension insurance system

for calendar year 2016

74,400 euros

91,800 euros

for calendar year 2017

76,200 euros

94,200 euros

for calendar year 2018

78,000 euros

96,000 euros

for calendar year 2019

80,400 euros

98,400 euros

for calendar year 2020

82,800 euros

101,400 euros

In the new Länder (East), the contribution assessment ceiling is

General pension insurance system

Miners'

pension insurance system

for calendar year 2016

64,800 euros

  79,800 euros

for calendar year 2017

68,400 euros

  84,000 euros

for calendar year 2018

69,600 euros

  85,800 euros

for calendar year 2019

73,800 euros

  91,200 euros

for calendar year 2020

77,400 euros

  94,800 euros

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.

Pursuant to Article 65 (6) (c), the minimum standards are to be calculated for a worker whose earnings are equal to 125% of the average earnings. Using the average earnings of all insured persons as a basis, as shown in Annexes 1 and 10 to SGB VI, earnings are as follows (in euros and per year):

Old Länder

New Länder

Remuneration in accordance with Annex 1 Book VI of the Social Code in 2020

40.551

Conversion value according to Annex 10 Book VI of the Social Code in 2020

1,0700

125% of the average remuneration

50.668

47.372

After deduction of taxes, social insurance contributions and private old-age provision costs, the net income for this worker (depending on the number of children) is given in the table below:

Married without children

Married with 2 children

Old Länder

New Länder

Old Länder

New Länder

Gross wages

50,688

47,372

50,688

47,372

+ child benefit

0

0

4,896

4,896

Gross income

50,688

47,372

55,584

52,268

- social contributions

10,201

9,534

10,353

9,676

- taxes

9,834

8,749

9,759

8,677

- personal pension savings

1,360

1,291

1,253

1,120

Net income

29,293

27,798

34,219

32,795

Pursuant to the provisions (Part XI, Protocol) of the European Code of Social Security or the table relating to Part V of C 128, the following minimum standards have to be complied with:

Case

Regulated in Part … oft he European Social Order

Basis …

Required benefit level in per cent of net income

Age

V

married man (pensioner)

45

Invalidity

IX

Married man, 2 children

50

Death of the breadwinner

X

Widow with 2 children

45

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 III (Information on the replacement rate of benefit)

The standard beneficiary for whom the following information should be given, for each scheme concerned, is a man with a wife of pensionable age where the previous earnings of the husband serving for the calculation of the benefit are equal to the wage of the skilled manual male employee shown in Title I, under C, above.

D.     Amount of benefit granted during the time basis.[17]

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

F.      Amount of family allowances, if any, payable in respect of the wife 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).

In accordance with Article 29 (1) (a), the benefit specified in Article 28 is to be determined for a skilled worker (125 % of average earnings) with 30 years of employment who starts to draw a pension when reaching the statutory retirement age. Since in the German law on pensions, periods such as unemployment, child-raising or training also exert an influence on the amount of the pension, in addition to the 30 years’ gainful employment, twelve months of Federal Voluntary Service, three years’ training time and two years’ technical college time are included in the pension calculation in order to achieve a more realistic biography.

In the light of the demographic trends, measures to restrain pension increases were adopted with the pension reforms of 2001 (Retirement Assets Act/Retirement Assets (Extension) Act) and 2004 (Pension Insurance Sustainability Act) in order to secure the long-term financial viability of the pension insurance system. These measures went hand in hand with enhanced state support to strengthen the second and third pillars of old-age provision. Thus the decline in the replacement ratio associated with the moderation of pension adjustments is to be compensated by supplementary old-age provision.

This systematic correlation explains why the calculations are based on the assumption that, under the requirements of Articles 27 D, 55 D and 61 D in conjunction with Article 6, the maximum amounts qualifying for state subsidies are paid into a Riester pension plan during the employee's entire work history.

In 2019, the number of occupational pension entitlements of active employees (second pillar) had risen from 14.6 million in 2001 to 21 million. The number of Riester pension contracts that were introduced in 2001 has  risen to 16.5 million. On the basis of a survey among employees insured in the statutory pension insurance aged 25 to 64 years, there is a prevalence rate of the subsidized additional provision for old age (Riester contracts or occupational pension schemes) of 66 percent. In both systems the fund management is subject to state supervision which is carried out by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht).

For simplification purposes a private retirement savings plan is taken into account in the following calculations to represent the supplementary pension systems described above. The calculations are based on the following assumptions: Savings rate = 4 % of gross income, interest rate = 4.0 %, administrative costs = 10 % of the paid premiums.

As the following table shows, the ratio of the net old-age pension to the net earnings of a worker with 125% of average income, assuming an insurance record of 30 years, is 68.1 % in the old Länder and 69.3 % in the new Länder, and thus higher than the required standard of 45%. In the statutory pension insurance as well as in private or occupational pension schemes the levels of pension rights and the replacement rates are gender-neutral.

Old-age pension

Old Länder

New Länder

1

Years of employment

30

30

2

Earnings points total (EP)

40.49

40.49

3

Current pension value (euros/ EP month)

34.19

33.23

4=2*3*12M

Gross pension (euros/ year)

16,613

16,146

5

Social contributions

1,853

1,800

6

Taxes

2,348

2,110

7

Personal pension savings

7,531

7,038

8=4-5-6+7

Net income in old-age

19,943

19,274

9

Net income from work

29,293

27,798

10=8/9

Ratio

68.1

69.3

The adjustment of the pension values will be completed by 2025. The basis for this is the Pension Alignment Conclusion Act (Gesetz über den Abschluss der Rentenüberleitung) adopted in 2017. It regulates the last steps towards a uniform pension law in East and West Germany.

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).

In the statutory pension insurance as well as in private or occupational pension schemes the levels of pension rights and the replacement rates are gender-neutral.

V - 5. Adjustment of benefit

§10 Article 65. ECSS

The rates of current periodical payments in respect of old age, employment injury (except in case of incapacity for work), invalidity and death of breadwinner, shall be reviewed following substantial changes in the general level of earnings where these result from substantial changes in the cost of living.

Article 29. C128

1. The rates of cash benefits currently payable pursuant to Article 10, Article 17 and Article 23 shall be reviewed following substantial changes in the general level of earnings or substantial changes in the cost of living.

2. Each Member shall include the findings of such reviews in its reports upon the application of this Convention submitted under Article 22 of the Constitution of the International Labour Organisation, and shall specify any action taken.

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 (Title VI):

1. Please state the methods adopted for giving effect, where necessary, to the provisions of paragraph 10 of Article 65 of the ECSS.

2. Please give the following information:

Period under review

Cost-of-living index

Index of earnings[18]

A. Beginning of period[19] ………………………..

B. End of period[20]………………………………..

C. Percentage A…………………………………

                           B

….………………………...

…….……………………..

…………………………

………………………..

……………………….

………………………..

3. Please state whether the amount of the periodical payments has been reviewed during the period of reference. If so, please indicate the changes made in the level of benefits and furnish the following information:

On pension adjustments:

As wage-related benefits pensions are, as a rule, adjusted in line with the last wage and salary developments (wage factor). For this purpose a new current pension value is to be determined annually on the basis of the data of gross wages and salaries per employee as shown in the national accounts. To reflect the actual revenue development of the statutory pension insurance, the wage developments identified for the purpose of determining the pension adjustment rates include not only the wage trends as shown in the national accounts statistics but also the development of the actually earned income liable to contributions.

To make sure that the costs of demographic change are equally shared between the generations and that the statutory pension insurance complies with financial sustainability principles, pension adjustments take account of two other important factors apart from the development of wages and salaries. Firstly, changes in the expenses of employees for the statutory pension insurance and supplementary old-age provision are taken into account in the pension adjustment process (factor of old-age provision expenses). Secondly, the so-called sustainability factor ensures that the development of the correlation between those who draw pensions and those liable to pay contributions is reflected in the adjustment of pensions. All three factors are summarized in the pension adjustment formula.

The respective pension adjustments (in per cent) in the period under review amounted to

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

In the period from 2016 to 2020, the figures reflecting developments in the cost of living in Germany on the one hand and developments of wages and pensions on the other, changed as follows on annual average:

Change in percent per annum

average 2016 -2020

Consumer prices

1.14

Wages

2.55

Pension value 1 July (old Länder)

3,.20

The development laid down in the table shows that the average adjustment of pensions has exceeded the annual average pay rises in the years 2016 to 2020 and that pensions increased clearly more strongly than consumer prices.

V - 6. Qualifying period

Article 29. ECSS

1. The benefit specified in Article 28 shall, in a contingency covered, be secured at least:

(a) to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period which may be 30 years of contribution or employment, or 20 years of residence; or

(b) where, in principle, all economically active persons are protected, to a person protected who has completed a prescribed qualifying period of contribution and in respect of whom while he was of working age, the prescribed yearly average number of contributions has been paid.

2. Where the benefit referred to in paragraph 1 of this article is conditional upon a minimum period of contribution or employment, a reduced benefit shall be secured at least:

(a) to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period of 15 years of contribution or employment; or

(b) where, in principle, all economically active persons are protected, to a person protected who has completed a prescribed qualifying period of contribution and in respect of whom, while he was of working age, half the yearly average number of contributions prescribed in accordance with paragraph 1.b of this Article has been paid.

3. The requirements of paragraph 1 of this Article shall be deemed to be satisfied where a benefit calculated in conformity with the requirements of Part XI but at a percentage of ten points lower than shown in the Schedule appended to that Part for the standard beneficiary concerned is secured at least to a person protected who has completed, in accordance with prescribed rules, ten years of contribution or employment, or five years of residence.

4. A proportional reduction of the percentage indicated in the Schedule appended to Part XI may be effected where the qualifying period for the benefit corresponding to the reduced percentage exceeds ten years of contribution or employment but is less than 30 years of contribution or employment; if such qualifying period exceeds 15 years, a reduced benefit shall be payable in conformity with paragraph 2 of this Article.

5. Where the benefit referred to in paragraphs 1, 3 or 4 of this Article is conditional upon a minimum period of contribution or employment, a reduced benefit shall be payable under prescribed conditions to a person protected who, by reason only of his advanced age when the provisions concerned in the application of this Part come into force, has not satisfied the conditions prescribed in accordance with paragraph 2 of this Article, unless a benefit in conformity with the provisions of paragraphs 1, 3 or 4 of this Article is secured to such person at an age higher than the normal age.

Article 18. C128

1. The benefit specified in Article 17 shall, in a contingency covered, be secured at least--

(a) to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period which may be 30 years of contribution or employment, or 20 years of residence; or

(b) where, in principle, all economically active persons are protected, to a person protected who has completed, prior to the contingency, a prescribed qualifying period of contribution and in respect of whom, while he was of working age, the prescribed yearly average number of contributions has been paid.

2. Where the old-age benefit is conditional upon a minimum period of contribution or employment, a reduced benefit shall be secured at least--

(a) to a person protected who has completed, prior to the contingency, in accordance with prescribed rules, a qualifying period of 15 years of contribution or employment; or

(b) where, in principle, all economically active persons are protected, to a person protected who has completed, prior to the contingency, a prescribed qualifying period of contribution and in respect of whom, while he was of working age, half of the yearly average number of contributions prescribed in accordance with subparagraph (b) of paragraph 1 of this Article has been paid.

3. The requirements of paragraph 1 of this Article shall be deemed to be satisfied where a benefit calculated in conformity with the requirements of Part V but a percentage of ten points lower than shown in the Schedule appended to that Part for the standard beneficiary concerned is secured at least to a person protected who has completed, in accordance with prescribed rules, ten years of contribution or employment, or five years of residence.

4. A proportional reduction of the percentage indicated in the Schedule appended to Part V may be effected where the qualifying period for the benefit corresponding to the reduced percentage exceeds ten years of contribution or employment or five years of residence but is less than 30 years of contribution or employment or 20 years of residence; if such qualifying period exceeds 15 years of contribution or employment, a reduced benefit shall be payable in conformity with paragraph 2 of this Article.

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.

V -7. Duration of benefit

Article 30. ECSS

The benefits specified in Articles 28 and 29 shall be granted throughout the contingency.

Article 19. C128

The benefit specified in Articles 17 and 18 shall be granted throughout the contingency.

V - 8. Suspension and coordination of benefit

Article 68. ECSS

A benefit to which a person protected would otherwise be entitled in compliance with any of Parts II to X of this Convention may be suspended to such extent as may be prescribed--

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is maintained at public expense, or at the expense of a social security institution or service, subject to any portion of the benefit in excess of the value of such maintenance being granted to the dependants of the beneficiary;

(c) as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, and during any period in respect of which he is indemnified for the contingency by a third party, subject to the part of the benefit which is suspended not exceeding the other benefit or the indemnity by a third party;

(d) where the person concerned has made a fraudulent claim;

(e) where the contingency has been caused by a criminal offence committed by the person concerned;

(f) where the contingency has been caused by the wilful misconduct of the person concerned;

Article 31. C128

1. The payment of invalidity, old-age or survivors' benefit may be suspended, under prescribed conditions, where the beneficiary is engaged in gainful activity.

2. A contributory invalidity, old-age or survivors' benefit may be reduced where the earnings of the beneficiary exceed a prescribed amount; the reduction in benefit shall not exceed the earnings.

3. A non-contributory invalidity, old-age or survivors' benefit may be reduced where the earnings of the beneficiary or his other means or the two taken together exceed a prescribed amount.

Article 32. C128

1. A benefit to which a person protected would otherwise be entitled in compliance with any of Parts II to IV of this Convention may be suspended to such extent as may be prescribed:

 (a) as long as the person concerned is absent from the territory of the Member, except, under prescribed conditions, in the case of a contributory benefit;

 (b) as long as the person concerned is maintained at public expense or at the expense of a social security institution or service;

 (c) where the person concerned has made a fraudulent claim;

 (d) where the contingency has been caused by a criminal offence committed by the person concerned;

 (e) where the contingency has been wilfully caused by the serious misconduct of the person concerned;

 (f) in appropriate cases, where the person concerned, without good reason, neglects to make use of the medical or rehabilitation services placed at his disposal or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries; and

(g) in the case of survivors' benefit for a widow, as long as she is living with a man as his wife.

2. In the case and within the limits prescribed, part of the benefit otherwise due shall be paid to the dependants of the person concerned.

Article 33. C128

1. If a person protected is or would otherwise be eligible simultaneously for more than one of the benefits provided for in this Convention, these benefits may be reduced under prescribed conditions and within prescribed limits; the person protected shall receive in total at least the amount of the most favourable benefit.

2. If a person protected is or would otherwise be eligible for a benefit provided for in this Convention and is in receipt of another social security cash benefit for the same contingency, other than a family benefit, the benefit under this Convention may be reduced or suspended under prescribed conditions and within prescribed limits, subject to the part of the benefit which is reduced or suspended not exceeding the other benefit.

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.

V - 9. Right of complaint and appeal

Article 69. ECSS

1. Every claimant shall have a right of appeal in case of refusal of the benefit or complaint as to its quality or quantity.

2. Where in the application of this Convention (Code) a government department responsible to a legislature is entrusted with the administration of medical care, the right of appeal provided for in paragraph 1 of this article may be replaced by a right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

3. Where a claim is settled by a special tribunal established to deal with social security questions and on which the persons protected are represented, no right of appeal shall be required.

Article 34. C128

1. Every claimant shall have a right of appeal in the case of refusal of benefit or complaint as to its quality or quantity.

2. Procedures shall be prescribed which permit the claimant to be represented or assisted, where appropriate, by a qualified person of his choice or by a delegate of an organization representative of persons protected.

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.

V - 10. Financing and Administration

See under Part XIII-3

Article 30. C128

National legislation shall provide for the maintenance of rights in course of acquisition in respect of contributory invalidity, old-age and survivors' benefits under prescribed conditions.

Article 35. C128

1. Each Member shall accept general responsibility for the due provision of the benefits provided in compliance with this Convention and shall take all measures required for this purpose.

2. Each Member shall accept general responsibility for the proper administration of the institutions and services concerned in the application of this Convention.

Article 36. C128

Where the administration is not entrusted to an institution regulated by the public authorities or to a government department responsible to a legislature, representatives of the persons protected shall participate in the management under prescribed conditions; national legislation may likewise decide as to the participation of representatives of employers and of the public authorities.


Part VI. Employment Injury Benefit

Germany has accepted the obligations resulting from C121 and Part VI of the ECSS, as amended by its Protocol.

Category

Relevant Articles

Questions raised by the CEACR

VI-1. Regulatory framework

Art.31 ECSS

VI-2. Contingency covered

Art.32 ECSS, Art.6 C121

VI-3. Definition of Industrial Accident

Art.7 C121

VI-4. Definition of Occupational Disease

Art.8 C121

VI-5. Persons Protected

Art.33 ECSS, Art.4 C121

VI-6. Medical Care and allied benefits

Art.34 ECSS, Art.10 C121

VI – 7. Cost-sharing and avoidance of hardship

Art.34 ECSS, Art.11 C121

VI-8. Prevention, rehabilitation and placement services

 

Art.35 ECSS, Art.26 C121

VI – 9. Temporary or initial incapacity for work

Art.36(1) ECSS, Art.13 C121

VI – 10. Loss of earning capacity likely to be permanent

Art.36(1) ECSS, Art.14(1) C121

VI – 10 (a). Total loss of earning capacity

Art.36(1) ECSS, Art.14(2) C121

VI – 10 (b). Partial loss of earning capacity

Art.36(2) ECSS

Art.14(3) C121

VI – 11. Death of the breadwinner: periodical payment

Art.36(1) ECSS

Art.18(1) C121

VI – 12. Death of the breadwinner: funeral benefit

Art.18(2) C121

VI – 13. Lump-sum payment

Art.15, 18(3) C121

Art.36(3) ECSS

Art.14(4)(5) C121