49th General Report

on the Implementation of the European Code of Social Security, as amended by the Additional Protocol (Article 74)

of the Government of the Federal Republic of Germany for the period from 1 July 2019 to 30 June 2020

Germany has ratified all parts of the Code as amended by the Additional Protocol.

On Part I

The provisions of the convention have mainly been implemented by the provisions of Germany's Social Code, in particular through

·         the Third Book (SGB III) - employment promotion of 24 March 1997

·         the Fifth Book (SGB V) - statutory health insurance of 20 December 1988

·         the Sixth Book (SGB VI) - statutory pension insurance of 19 February 2002

·         the Seventh Book (SGB VII) - statutory accident insurance of 7 August 1996, and

·         Part X of the Income Tax Law – Child Benefit.

The provisions equally apply to seafarers and sea fishermen.

On Part II

Medical Care

Regarding Article 9 (or Articles 10 and 12 of ILO Convention No. 130, respectively)

A.    Letter (a) is the basis.

B.    With regard to the group of persons protected in accordance with Article 9 of ILO Convention No. 102 and Articles 10, 12 of ILO Convention No. 130, reference is made to the previous reports (last detailed report no. 40 and general reports nos. 41 to 47). Compared to the last report, the following legal changes occurred during the reporting period:

Income thresholds

In 2020, the general annual earnings threshold up to which workers and salaried employees must be insured under the statutory health insurance scheme is 62,550 euros (Section 6 (6) Fifth Book of the Social Code. Buch (SGB V). In 2020, the special annual earnings threshold for employees with private health insurance on 31 December 2002 amounts to 56,250 euros (Section 6 (7) of SGB V).

General annual earnings threshold		besondere Jahres-arbeitsentgeltgrenze
50,850.-- euros	euros	45,900	euros
52,200	euros	47,250	euros
53,550	euros	48,600	euros
54,900	euros	49,500	euros
56,250	euros	50,850	euros
57,600	euros	52,200	euros
59,400	euros	53,100	euros
60,750	euros	54,450	euros
62,550	euros	56,250	euros

In 2019, the earnings threshold up to which spouses and children of insured persons are co-insured as family members under Section 10 of SGB V if they do not have their own insurance coverage, are not exempt from insurance or self-employed on a full-time basis is 445 euros. In the case of marginal employment, the earnings threshold in the reporting period was 450 euros.

Total income threshold		Income threshold Marginal employment
375	euros	400	euros
385	euros	450	euros
395	euros	450	euros
405	euros	450	euros
415	euros	450	euros
425	euros	450	euros
435	euros	450	euros
445	euros	450	euros
455	euros	450	euros

On Part III
Sickness benefit

The monthly benefit assessment ceiling (maximum limit) for the assessment of sickness benefit was 4,537.50 euros in 2019. In 2020, it is 4,687.50 euros. 

(The changes are in the year and in the euro amounts).

On Part IV

Unemployment Benefit

For the year 2018, the contribution assessment ceiling, which is adjusted according to gross wage developments, was fixed at 6,500 euros per month for West Germany and at 5,800 euros per month for East Germany.

The income threshold for 2019 is 6700 euros (West) and 6150 euros (East).

On 1 January 2020, access to unemployment insurance will be made easier. From that time the minimum coverage period of twelve months required for an entitlement to unemployment benefit can be completed within 30 months (until 31 December 2019 within 24 months). The new regulation is included in the Skills Development Opportunities Act (Qualifizierungschancengesetz) of 18 December 2018.

On Part V

Old-age Benefits

Changes that occurred during the reporting period

In the period under review the relevant values in the statutory pension insurance have changed as follows:

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

32.03 EUR      for the period from 01/07/2018 to 30/06/2019

33.05 EUR      for the period from 01/07/2019 to 30/06/2020

and in the new Länder (East) it is

30.69 EUR      for the period from 01/07/2018 to 30/06/2019

31.89 EUR      for the period from 01/07/2019 to 30/06/2020

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

	General Pension insurance	Miners' pension insurance
for calendar year 2018 for calendar year 2019 for calendar year 2020	78,000 euros 80,400 euros 82,800 euros	96,000 euros 98,400 euros 101,400 euros

and in the new Länder (East) it is

	General pension insurance	Miners' pension insurance
for calendar year 2017 for calendar year 2018 for calendar year 2019	69,600 euros 73,800 euros 77,400 euros	85,800 euros 91,200 euros 94,800 euros

The total number of Riester contracts for supplementary pension plans amounted to around 16.5 million at the end of 2019, and the number of occupational pension entitlements of active employees (second pillar) at the end of 2017 was around 20.8 million.

On pension adjustments:

Pension adjustments are based on the development of wages. The wage increase which was relevant to the pension adjustment on 1 July 2019 was 2.39 percent in the old Länder and 2.99 percent in the new Länder. It is a result of the wage development reported by the Federal Statistical Office as calculated by national accounts which, however, did not take account of the impact of work opportunities providing reimbursement of additional expenditure (so-called "one-euro jobs"). In addition, the development of insured persons' salaries subject to contributions is taken into account that is decisive for the income situation of the statutory pension insurance scheme.

Apart from the development of wages, the 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. In this year, the sustainability factor is responsible for an increase of +0.64 percentage points in the pension adjustment. In addition to this, the factor of old-age provision expenses is used to transfer the changes in the expenses of employees in setting up their old-age provision to the adjustment of pensions. In this year, the factor of old-age provision expenses is responsible for an adjustment increase of 0.13 percentage points because the contribution rate in general pension insurance in 2017 (18.7 percent) fell by 0.1 percentage points compared with the year 2018 (18.6 percent) and the "Riester reform scale" was last applied in 2013.

In connection with this year’s pension adjustment, compliance with the pension level protection clause from the Act on Improving and Consolidating the Benefits Provided by the Statutory Pension Insurance System will be reviewed for the first time. This helps to ensure that the pension level of 48 percent will not be undercut in the period until 1 July 2025. The pension level (designated in the Act as ‘protection level before taxes’) describes the ratio between the disposable standard pension and the disposable average earnings, in each case before taxes. The pension level for the year 2019 amounts to 48.16 percent calculated on the basis of the current pension value in accordance with the pension adjustment formula. Therefore, the minimum protection level of 48 percent is observed and the level protection clause does not have to be applied.

As for pension adjustments in the new Länder, the adjustment steps laid down in the Act concluding the extension of pension legislation to the East German Länder are relevant. This year the current pension value (East) has to be adjusted to reach at least 96.5 percent of the West German value. With this adjustment step, pension adjustments in East Germany are higher than they would have been if based on the actual wage development in East Germany.

On the basis of the available data, the current pension value increased from 32.03 euros to 33.05 euros as of 1 July 2019 and the current pension value ( East ) from 30.69 euros to 31.89 euros. This corresponds to a pension adjustment of 3.18 per cent in the old Länder and of 3.91 per cent in the new Länder.

The following changes occurred in Germany in the period 2018 to 2019 as to developments in the cost of living, on the one hand, and wages and pensions on the other:

The developments shown in the table indicate that pension adjustments of + 3.18 percent exceeded developments in prices and wages in the old Länder.

On Part VI

Employment Injury Benefit

The following changes occurred during the period under review:

Adjustment of the nursing care allowance:

As from 1 July 2019, nursing care allowances range from 374 euros to 1,491 euros per month in West Germany and from 354 euros to 1,423 euros per month in East Germany.

Pension adjustment

As from 1 July 2019, injury pensions from the statutory accident insurance were adjusted by a factor of 1.0318 in West Germany and 1.0391 in East Germany, which is an increase of 3.18 per cent and 3.91 per cent respectively.

On Part VII

Family Benefit

As from 1 January 2019, the child benefit is 204 euros per month for the first and for the second child, 210 euros per month for the third child and 235 euros per month for the fourth and each further child.

There were no changes in the child benefit and the parental allowance in the relevant period under review. Both family benefits are subject to the Social Security Ordinance. However, the child supplement was re-designed and the changes in two steps took effect on 1 July 2019 and 1 January 2020, respectively. In a first step the child supplement was raised from 170 euros to 185 euros per month and child and is now also available to single parents. In a second step the group of entitled persons was extended. The upper earnings threshold has been removed. From now on, only 45 percent  - instead of 50 percent in the past - of the parents’ income over and above their personal needs will be taken into account. In addition, the Federal Government is currently preparing the reform of the Federal Parental Allowances and Parental Leave Act (Bundeselterngeld- und Elternzeitgesetz).

On Part VIII

Maternity Benefits

Maternity protection rules have not been amended since the 48th report. Pursuant to section 34, first sentence of the Act on the Protection of Working Mothers the Federal Government has to submit an evaluation report on the effect of the Act on the Protection of Working Mothers to the German Bundestag by 01 January 2021. The central items in the report shall include the manageability of the statutory provisions in public authorities’ day-to-day business as well as the effectiveness and impact of the Act with a view to its scope of application. Currently an evaluation is underway in order to prepare the report.

On Part IX

Invalidity Benefit

Due to the Act on Benefit Improvement and Stabilization in the Statutory Pension Insurance (RV-Leistungsverbesserungs- und -Stabilisierungsgesetz) of 28 November 2018 provision for persons with reduced earning capacity was further improved in the statutory pension insurance.

In 2019, the so-called added period according to which pensions on account of reduced earning capacity are calculated as if the persons insured continued to work as before after becoming incapacitated for work, was extended in one step from age 62 years and three months to age 65 and eight months for future pensions. Moreover, the Act sets out that from 2020 the end of the added period will go up gradually to age 67 in line with the increased statutory retirement age. In 2020, the added period will be accordingly extended to 65 years and nine months. This means a targeted and essential increase in entitlements for new pensioners.

On Part X

Survivors' Benefit

The statutory regulations on the “survivors’ benefit” have neither been amended last year nor are any amendments expected.”

On Part XII

Common provisions

No changes in the period under review.