Social security in Germany - statistics & facts
Unemployment in Germany is currently at its highest since 2015. Those who are unemployed receive a sum of money from the government each month to support them, and this is regardless of whether they are unable to find work because they cannot work, or because what they earn does not cover their living costs.
Social security is an important aspect of helping those who cannot work and are therefore more vulnerable to falling below the poverty line. The increase in inflation over the past few years is just one reason why the revision of social security payments has been so necessary.
Social security reform
Up until January 2023, the benefits system was called Hartz IV. It was then changed to Bürgergeld, or citizen’s benefits. One big difference between the two schemes was that there was the amount of money given out in 2023. Whilst Hartz IV had often increased by less than 10 euros per year, there was an increase of over 50 euros from 2022 to 2023. The exact amount that people are eligible to receive differs slightly depending on their status. Adults without dependents are the individuals who receive the most money at 563 euros per month. Unemployed adults under 25 years old who are living with their parents currently get 451 euros each month. The government’s decision to switch from Hartz IV to Bürgergeld to the welfare system was, however, met with criticism. Those who opposed the changes believed that the reformed welfare policy did not provide enough incentive for those who were not employed.What is a benefit community?
When talking about social security in Germany the term “Bedarfsgemeinschaften” or benefit communities in English is often used. This word describes how under German Law (SGB II) households in which members are economically dependent on each other are all taken into account when being considered for which benefits they are eligible. Some examples of household members often included are spouses or life partners (if they are not permanently separated), people in a marriage-like community, and children who still live in the household and are under the age of 25. In Germany, there are currently over 2.9 million benefit communities. Although there are people in need of support all over Germany, there are some areas with a significantly higher proportion of benefit communities. Bremen, Berlin, and Hamburg had the highest share of children living in benefit communities, each city had over 20 percent and the rate in Bremen was over 30 percent.Social security is an important aspect of helping those who cannot work and are therefore more vulnerable to falling below the poverty line. The increase in inflation over the past few years is just one reason why the revision of social security payments has been so necessary.
