Social Insurance

All employees are obliged to be insured so that they receive protection in case of sickness or accidents, unemployment, in old age, or if they need care or suffer from a disability. Social insurance guarantees social security in our society. An overview of the German social security system can be found in the brochure "Soziale Sicherung im Überblick", which is published in a number of languages. The brochure and other information are available from the "Bundesministerium für Gesundheit und Soziale Sicherung" (Federal Ministry of Health and Social Security) and at www.bmgs.bund.de. All employees are compulsorily insured. The "Sozialversicherung" has five pillars:

Health Insurance

Health Insurance provides financial protection in times of sickness and during maternity leave. The insurance also covers the spouse and children of the insured person, if these people have little or no personal income. Individuals can choose between various health insurers ("Krankenkassen"): "Allgemeine Ortskrankenkasse", "Ersatzkassen", "Betriebskrankenkassen" or "Innungskrankenkassen". The health insurers differ only slightly in the level of contributions collected and the services and cover offered. The basic services covered are laid down by law. All employees below a certain income are obliged under law to be publicly insured. If income is above this higher level, the individual can choose between public and private health insurers.

You can find more information at www.gkv.info, www.die-gesundheitsreform.de/presse/publikationen/broschueren/index.html.

Pension Insurance

The pension insurance ("Rentenversicherung") is the most important pillar securing old age in Germany. Employers, along with apprentices and certain groups of self-employed people, are obliged to have public pension insurance. The main functions of the pension insurers are:

• payment of pensions to the insured or their surviving dependants (spouse and orphans)
• provision of medical and occupational rehabilitation measures.

Certain conditions have to be fulfilled before pensions can be drawn. The men and women insured must have reached a minimum age ("Altersgrenze"), they must have paid contributions for a certain amount of time ("Wartezeit") and they have to apply for a pension. Pensions are generally paid at the age of 65, but it is also possible to receive an early pension or to work longer and receive the pension at a later age. The "Bundesministerium für Gesundheit und Soziale Sicherung" (Federal Ministry for Health and Social Security) has information on pensions, partial pensions, pensions due to reduced earning capacity and pensions due to death (for spouses and orphans).

You can find more information at www.renteninfo-online.de, www.bfa.de, www.lva.de.

In order to secure a certain standard of living in retirement, it is advisable to supplement the state pension – which is based on the principle of solidarity – with a private pension. Consumer advice agencies give information on state schemes to fund private and company pension schemes.

Nursing Care Insurance

The nursing care insurance ("Pflegeversicherung") provides social security if nursing care is needed. Payment of contributions awards people the right to financial aid for care as an inpatient or outpatient.

Unemployment Insurance

Unemployment insurance offers financial help for the unemployed and assistance in acquiring new employment. Anyone who has paid unemployment contributions for a certain period of time and is then made unemployed, or registers themselves as unemployed, has a right to unemployment benefits. The German Federal Employment Office ("Bundesanstalt für Arbeit") has a number of employment promotion schemes for employers and employees alike and endeavours to place as many job seekers as possible in employment.

You can find more information at www.arbeitsagentur.de, www.bmwa.bund.de, www.arbeitsmarktreform.de.

Accident Insurance

Accident insurance reduces the financial burdens of accidents at the workplace or occupational illnesses. It offers prevention advice (reducing accident risk in the workplace) and rehabilitation services.

International Social Insurance

German laws on social security state that the services provided are only available in Germany. But there are also possibilities to receive certain social security benefits in other countries. International and bilateral social security agreements regulate these cases. Within the European Union there is a legal foundation whereby social benefits can be sought in member state countries. For instance, health care for those insured and their families is guaranteed. There are also a number of social security agreements with non-EU European states and with countries outside Europe. The arrangements within the EU and with some other states are very comprehensive. The most important aspects are services in case of sickness, disability and in old age. They also cover services for the care of surviving dependants and services in case of accidents in the workplace or occupational illnesses. The international agreements are based on two fundamental conditions:

• The people covered by the agreements have the same basic social rights.
• Residence in the member state or in the state that has a bilateral agreement is based on the same equal principle.