Financing of social expenditure
With respect to the financing of social expenditure according to the European System of Integrated Social Protection Statistics (ESSPROS), more than one third of social expenditure is financed via employers’ social contributions (2010: 37%) and via general revenues from the federal government, Länder (federal provinces) and municipalities (35%), more than one quarter by social contributions from protected persons (26%). The proportion of receipts from employers has decreased continuously during the reported years. The share of revenue from the government went down until 2001 and increased afterwards moderately or rather heavily in 2009, while the proportion from protected persons grew gradually but declined in 2009.
While just under one third of social protection systems, such as the federal long-term care allowance and child tax allowance, are financed exclusively by general government revenues, one quarter of the systems are financed either entirely (guaranteed remuneration by employers in the event of sickness) or primarily (occupational pension provision, occupational accident insurance, family burdens equalisation) by employers. At least two thirds of statutory pension insurance is financed by employers’ and employees’ social contributions.
Payments by beneficiaries, such as prescription charges, cost sharing and private preventive care, are not taken into account for either expenditure or receipts.
Please consult our German website for tables containing further information.
| Results (overview): financing of social expenditure |  |  |  |
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