EUROMOD country report :Germany : 2020-2023

Table of Contents

• 1. Basic information 7
• 1.1 Basic information about the tax-benefit system 7
• 1.2 Social Benefits 8
• 1.2.1 Benefits from Statutory Unemployment Insurance 8
• 1.2.2 Benefits from Statutory Health and Accident Insurance 10
• 1.2.3 Benefits from Statutory Pension Insurance 11
• 1.2.4 Pensions from Other Institutions: 12
• 1.2.5 Public Transfers to Private Households 13
• 1.3 Social contributions 16
• 1.4 Taxes 17
• 1.4.1 Direct Taxes 17
• 1.4.2 Indirect Taxes 18
• 2. Simulation of taxes, social insurance contributions and benefits in EUROMOD 19
• 2.1 Scope of simulation 19
• 2.1.1 Partially simulated tax-benefit components 24
• 2.2 Main policy changes 25
• 2.3 Order of simulation and interdependencies 27
• 2.4 Policy extensions 29
• 2.5 Benefits 30
• 2.5.1 Child Benefits (bch00_de) 30
•  Definitions 30
•  Eligibility Conditions 30
•  Income Test 30
•  Benefit Amount 31
•  EUROMOD modelling 31
• 2.5.2 Unemployment Benefits I (bunct_de) 31
•  Definitions 31
•  Eligibility Conditions 31
•  Income Test 31
•  Benefit Amount 31
•  Benefit Duration 32
•  EUROMOD modelling 32
• 2.5.3 Disability Pension from the Statutory Accident Insurance (pdiss_de) 33
•  Definitions 33
•  Eligibility Conditions 33
•  Income Test 33
•  Benefit Amount 34
•  EUROMOD modelling 34
• 2.5.4 Education Benefits (bed_de) 34
•  Definitions 34
•  Eligibility Conditions 34
•  Income Test 34
•  Benefit Amount 35
•  EUROMOD modelling 36
• 2.5.5 Long-Term Care Benefits from Statutory Accident Insurance (pdiac_de) 36
• 2.5.6 Sickness Benefits (bhl_de) 36
•  Definitions 36
•  Eligibility Conditions 37
•  Income Test 37
•  Benefit Amount 37
•  EUROMOD modelling 37
• 2.5.7 Citizen’s benefit and Social Benefits (bunnc_de and bsaot_de) 37
•  Definitions 38
•  Eligibility Conditions 38
•  Income Test 38
•  Benefit Amount 39
•  EUROMOD modelling 40
• 2.5.8 Maternity Leave Benefits (bmact_de) 40
•  Definitions 41
•  Eligibility Conditions 41
•  Income Test 41
•  Benefit Amount 41
•  Subject to taxes/SIC 41
•  Take up 41
•  EUROMOD modelling 41
• 2.5.9 Parental Leave Benefits (bplct_de) 42
•  Definitions 42
•  Eligibility Conditions 42
•  Income Test 42
•  Benefit Amount 42
•  Subject to taxes/SIC 42
•  Take up 43
•  EUROMOD modelling 43
• 2.5.10 Housing benefits (bho00_de) 43
•  Definitions 43
•  Eligibility Conditions 43
•  Income Test 44
•  Benefit Amount 44
•  EUROMOD modelling 44
• 2.5.11 Social Assistance for Old-age and for Reduced Work Ability (bsaoa_de) 45
•  Definitions 45
•  Eligibility Conditions 45
•  Income Test 45
•  Benefit Amount 45
•  EUROMOD modelling 46
• 2.5.12 General Social Assistance (bsa00_de) 46
•  Definitions 46
•  Eligibility Conditions 46
•  Income Test 47
•  Benefit Amount 47
•  EUROMOD modelling 48
• 2.5.13 Additional Child Benefits (bchot_de) 48
•  Definitions 48
•  Eligibility Conditions 48
•  Income Test 48
•  Benefit Amount 49
•  EUROMOD modelling 49
• 2.5.14 Educational Allowance for School Material (bched_de) 50
•  Definitions 50
•  Eligibility Conditions 50
•  Income Test 50
•  Benefit Amount 50
•  EUROMOD modelling 50
• 2.5.15 Wage Compensation Scheme (bwkmcee_de) 50
•  Definitions 50
•  Eligibility Conditions 51
•  Income Test 51
•  Benefit Amount 51
•  EUROMOD modelling 51
• 2.5.16 Covid-related one-off child bonus (bencovidch_de) 51
•  Definitions 51
•  Eligibility Conditions 51
•  Income Test 51
•  Benefit Amount 51
•  EUROMOD modelling 52
• 2.5.17 Covid-related one-off benefit for the self-employed (bencovidse_de) 52
•  Definitions 52
•  Eligibility Conditions 52
•  Income Test 52
•  Benefit Amount 52
•  EUROMOD modelling 52
• 2.5.18 Heating bonus (bhtxp_de) 52
•  Definitions 52
•  Eligibility Conditions 52
•  Income Test 53
•  Benefit Amount 53
•  EUROMOD modelling 53
• 2.5.19 Lump-sum energy transfer (blsxp_de) 53
•  Definitions 53
•  Eligibility Conditions 53
•  Income Test 53
•  Benefit Amount 53
•  EUROMOD modelling 54
• 2.5.20 One-off payments for unemployed and recipients of social assistance (bsaxp_de) 54
•  Definitions 54
•  Eligibility Conditions 54
•  Income Test 54
•  Benefit Amount 54
•  EUROMOD modelling 54
• 2.5.21 Lump-sum energy transfer for students (blsxpsd_de) 54
•  Definitions 54
•  Eligibility Conditions 55
•  Income Test 55
•  Benefit amount 55
•  EUROMOD Modelling 55
• 2.6 Social insurance contributions 55
• 2.6.1 Employer Social Contributions (tscer_de) 59
• 2.6.2 Employee Social Contributions (tscee_de) 60
• 2.6.3 Self-Employed Social Contributions (tscse_de) 61
• 2.6.4 Pensioner Social Contributions (tscpe_de) 62
• 2.6.5 Other Social Contributions (tscot_de) 63
• 2.7 Direct taxes 64
• 2.7.1 Taxable Income (tin_de) 64
•  Tax Base 66
•  Tax Allowances 66
• 2.7.2 Individual Taxation (tinit_de) 68
•  Tax Unit 69
•  Tax Exemptions 69
•  Tax Allowances 69
•  Tax Base 69
•  Tax Schedule 69
•  Tax Credits 71
• 2.7.3 Joint Taxation (tinjt_de) 71
•  Tax Unit 72
•  Tax Exemptions 72
•  Tax Allowances 72
•  Tax Base 72
•  Tax Schedule 73
•  Tax Credits 73
• 2.7.4 Capital Income Taxation (tinkt_de) 73
•  Tax Unit 73
•  Exemptions 73
•  Tax Allowances 73
•  Tax Base 74
•  Tax Schedule 74
•  Tax Credits 74
• 3. Data 74
• 3.1 General description 74
• 3.2 Data adjustment 75
• 3.3 Imputations and assumptions 76
• 3.3.1 Time period 76
• 3.3.2 Gross incomes 77
• 3.3.3 Disaggregation of harmonized variables 77
• 3.3.4 Approximation of Benefit Entitlement Basis 82
• 3.3.5 Imputation of Tax Deductions/Allowances 83
• 3.3.6 Other Imputed Variables 83
• 3.4 Updating 84
• 4. Validation of input dataset based on eu-silc 2021 85
• 4.1 Aggregate Validation 85
• 4.1.1 Components of disposable income 85
• 4.1.2 Validation of market income 86
• 4.1.3 Validation of taxes and social insurance contributions 87
• 4.2 Income distribution 90
• 4.2.1 Income inequality 90
• 4.2.2 Poverty rates 90
• 5. Summary of “health warnings” 91
• 6. References 91
•  Sources for tax-benefit descriptions/rules 93
• Annex 1. Uprating Factors 94
• Annex 2. Policy Effects in 2022-2023 98
• Annex 3. Validation Tables 101