Working in germany (Labor laws, Social security and Employee benefits)

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Text of Working in germany (Labor laws, Social security and Employee benefits)


    Presented by: Akshay Dabar

    Working in Germany (Labor laws, Social security and

    Employee benefits)



    1. Labor/Employment laws Facts About German Worker Rights Working Hours? Wages German Application Free Movement of Workers 2. Social security Health Insurance Pension Insurance Accident Insurance Social Indemnity 3. Employee benefits Elterngeld / Parental Allowance in Germany Unemployment benefits Eligibility requirements


    uFacts About German Most populous country in Europe (82 million) Worlds third largest national economy Labor force: 43.05 million Unemployment rate of about 5.2% Much higher unemployment rate in eastern Germany than western

    Germany Establishes legal rules primarily through codes rather than cases

    uGermany: Provides Greater Worker Rights Than other countries

    Strong job security by statute Broad range of mandated benefits Collective bargaining agreements cover a broad range of employees Works councils supplement employee voice at local level Co-determination


    Working Hours?

    German law sets 48 hours as the normal work week with 8 hours per day.

    In certain cases of collective agreement however, the employee work week may be reduced to anywhere between 35 to 38.5 hours.

    Expecting or nursing mothers may not work more than 8 hours a day In certain cases of collective agreement however, the employee

    work week may be reduced to anywhere between 35 to 38.5 hours. Likewise, employees/trainees under the age of 18 may not work

    more than 8 hours a day. Excluding those under 18 and nursing/pregnant women, employees

    may have the work day extended up to 10 hours, provided that the average amount of hours per day remains at 8 for the following 6 months


    Minimum Working Hours


    Labor cost/Productivity


    u Wages Germany does not have a statutory minimum wage. Nevertheless,

    collective agreements set a minimum wage for different industries/positions.

    The employment contract determines the pay and this amount cannot be less than the minimum wage set forth by the applicable collective agreement.

    uGerman Application Employer provided paid sick leave only to full-time workers Labor court ruled practice invalid

    85% of part-time employees = women Second income justification insufficient; many part-time workers

    dependent on such employment for livelihood


    EU Treaty establishes right of workers to accept employment and move anywhere within EU

    Allows workers to remain in other country post-employment under certain conditions

    Can look for a job in another member country and work there without a work permit

    Have right to equal treatment with nationals in access to employment, working conditions and all other social and tax advantages

    Can have their family members join them with derived rights

    Free Movement of Workers


    Social security:

    Health Insurance Pension Insurance Accident Insurance Social Indemnity


    Health Insurance

    About 85% of the German population is insured under the Gesetzliche Krankenversicherung (GKV), the German version of a national health system

    Employed persons making more than 4,687.50 monthly (56,250 per year) have the option of either remaining in the statutory health insurance plan or taking out private insurance


    Pension Insurance

    This statutory old age insurance fund ensures that employees can maintain an appropriate standard of living when they retire.

    Payments are generally made from age 65, and the maximum payout currently amounts to some 67% of average net income during the insured's working life


    Accident Insurance

    The statutory accident insurance system offers protection and assistance in the event of mishaps at work, or on the way to and from work.

    Payments cover the costs of treatment and recuperation, pensions in the event of invalidity and funeral costs in the event of death.


    Social Indemnity

    It is for persons whose adverse condition is considered the responsibility of the community, and is paid by the state.

    Those covered include disabled war veterans, war widows and orphans, soldiers with service-incurred health problems and the victims of violent crime.


    Employee benefits

    uElterngeld / Parental Allowance in Germany

    Who Can Get Elterngeld? Employed, self-employed and bureaucrats Unemployed parents Students and apprentices Parents of adoptive children

    Eligibility for Elterngeld Have a residence in Germany or an Aufenthaltserlaubnis (residence permit) that allows you to work in Germany You and your child reside together You care and rear your child personally You do not work more than 30 hours per week during the time Elterngeld is issued

    How Much Is It? 67% of the applying parent's after tax earnings, averaged over 12 months before


    the child's birth Maximum amount monthly is 1,800 EURO Minimum amount issued to eligible applicants is 300 EURO (even for unemployed parents) For each multiple birth, 300 EURO per child issued.

    uUnemployment benefits physical existence, i.e. nutrition, clothing, household goods, decent accommodation,

    heating, health and hygiene, as well as the possibility of maintaining interpersonal relationships and at least a minimum involvement in social, cultural and political life.

    The educational and integration packages ensure that children, adolescents and

    young adults receive at least the socio-cultural bare minimum. Health insurance Unemployed persons: with children receive 67%, without children, 60% of the net wage In 2014, this will be a maximum of EUR 5,950 per month in West Germany and EUR 5,000 in East Germany.


    Eligibility requirements

    Eligibility requirements have registered at the labor office have applied for unemployment benefit have no job or you work less than 15 hours per week are available for work and are actively seeking for a job have been paying contributions for at least 12 months of the 2 years

    before becoming unemployed. over 15 and under 65 are normally resident in the Federal Republic of Germany