Overview

• The social insurance system’s administrative budget totals about €25 billion annually, according to employer associations.
• Statutory health insurance accounts for the largest share with €11 billion in overhead costs.
• Unemployment insurance has the highest administrative ratio at 14 percent of expenditures, while pension insurance records the lowest at 1.2 percent.
• Employer association president Rainer Dulger urges streamlined, digital processes to cut bureaucracy and ease the burden on contributors.
• The €25 billion in annual administrative spending exceeds Germany’s combined outlays on parental allowance, housing benefit and student aid.