Index

Statutory accident insurance is a liability insurance on the part of employers in favor of employees who are thereby protected from the consequences of an accident at work or an occupational disease.

The Federal Government and cabinet is made up of the Federal Chancellor and the Federal Ministers. While the Chancellor holds the power to issue directives, the ministers have departmental powers, meaning that they independently run their respective ministries in the framework of those directives. Moreover, the cabinet abides by the collegial principle, in disputes the Federal Government decides by majority. The affairs of state are managed by the Chancellor.

Almost all citizens in Germany have health insurance, whether as a compulsory member of the statutory health insurance scheme (90 percent) or a private health insurance scheme (10 percent). The health insurance companies cover the cost of medical treatment, medication, hospitalization and preventive health care. Contributions to the health insurance scheme are made by employees and employers. Non-employed family members of those in a compulsory health insurance scheme do not pay any contributions.

As early as the 19th century Germany attracted a large number of immigrants and since the 1950s has emerged as the European country with the largest immigrant population. In 1950, there were about 500,000 foreigners in Germany, accounting for a mere one percent or so of the population. This has changed emphatically: Today, some 11.6 million foreigners live in Germany, or 13 percent of the population.

Long-term care insurance was introduced in 1995 as the “fifth pillar” of the social insurance system. The compulsory insurance is financed by equal contributions by employers and employees.

In Germany those with no work can claim support. Anyone who is unemployed and over the past two years has paid contributions to the state unemployment insurance system for at least 12 months is entitled to unemployment benefit (60 to 67 percent of their last net income). This unemployment benefit is financed through the contributions of which employers and employees each pay half. The longest period for which unemployment benefit can be drawn is between six and 24 months. After that period those looking for work can apply for basic support (known as “unemployment benefit II”), which is assessed according to the applicant’s needs. In the economic crisis the system of short-time work payment financed from tax revenue proved its worth. It enabled companies to avoid redundancies in a difficult economic situation.