Bienestar

The welfare state has a long tradition in Germany dating back to the industrial revolution. Due to the pressure of the workers’ movement in the late 19th century, Reichskanzler Otto von Bismarck introduced the first rudimentary state social insurance scheme. Today, the social protection of all its citizens is considered a central pillar of German national policy. 27.6 percent of Germany’s GDP is channeled into an all-embracing system of health, pension, accident, longterm care and unemployment insurance, compared to 16.2 percent in the US. In addition, there are tax-financed services such as child benefits (Kindergeld, beginning at €184 per month for the first and second children, €190 for the third and €215 for each child thereafter, until they attain 25 years or receive their first professional qualification),^[12] and basic provisions for those unable to work or anyone with an income below the poverty line.^[13]

Since 2005, reception of full unemployment pay (60-67% of the previous net salary) has been restricted to 12 months in general and 18 months for those over 55. This is now followed by (usually much lower) Arbeitslosengeld II (ALG II) or Sozialhilfe, which is independent of previous employment.

Under ALG II, a single person receives €364 per month plus the cost of ‘adequate’ housing, a pension scheme and health insurance. ALG II can also be paid partially to supplement a low work income.