Social Security : Germany

Germany’s social security system has a long history and its efficiency is legend. Social benefits and services account for 34.2 percent of the gross domestic product and in 1995 exceeded DM 1,179 billion. One third of this was accounted for by pension insurance and over a fifth by statutory health insurance. The state thus meets the requirements of Article 20, paragraph 1 of the constitution (Basic Law), which says that the Federal Republic is a democratic and social federal state.

The underlying principles of the social state are solidarity on the one hand and personal responsibility on the other. To uphold these principles, the state has enacted extensive social legislation ranging from sickness, long-term care, accident and old-age insurance to child benefits, housing supplements and unemployment benefits. It also makes provision for social assistance to ensure a minimum standard of living.