German Social Security also covers insurance for unemployment, known as albeitslosenversicherung, which sees both the employer and employee contribute a certain percentage of the employee’s gross income.
Compensation for unemployment is a combination of subsistence allowance and contributions-based claims. 60% will be received of your previous net income for a time period between six and 24 months of unemployment.
After a period of up to two years, everybody receives aid for welfare, ALG II or Harts IV, as a standardized subsistence allowance. One condition for reception of this allowance is your readiness to consent to all job offers, even low paid ones or unskilled duties. Since its insertion in 2005, Harts IV has attracted harsh criticism and been the subject for various debates within Germany.
German Social Security Benefits for Families
The greatest significant tax-financed benefits within the German social security system are the Kindergeld (child allowance), Mutterschaftgeld (maternity benefits) and BafÖg (student loans for universities in Germany).
The Kindergeld is of extreme interest to expatriate families. After living in Germany for 12 months, every resident can apply for Kindergeld at the local Arbeitsamt (employment agency). Parents collect between €184 and €215 per month for each child. Offspring between 18 and 25 years old can still receive this kind of allowance if they attend a school or university. In order to request the Kindergeld, you will need your residence permit, local registration certificate, an application form and the child’s birth certificates.
Germany works with numerous laws to protect pregnant women and new mothers. Expectant mothers have the right to provisionally stay home from work for six weeks afore childbirth. They are forbidden to work for eight weeks after childbirth. (If you are having twins or if your baby was born prematurely, you must stay at home for three months after giving birth.) An expecting mother only has to inform her employer, and she’ll be put on paid maternity leave.
For more information on German Social Security, German Payroll, Working in Germany or Contracting in Europe visit the Euro Accountancy & Finance Services website.