What is Social Security and how does it work?
Compulsory insurance for employees
Social insurance includes five types of insurance, which are prescribed by law. They are intended to protect employees from the consequences of illness and old age, but also from loss of income in the event of unemployment. These are the five state social insurances: health insurance, long-term care insurance, accident insurance, pension insurance and unemployment insurance.
The idea of solidarity
The idea behind social insurance is that the community of insured employees helps the individual when he or she is in need, becomes ill or unemployed, suffers an accident or is in need of care in old age.
All employees have to pay a monthly amount, which depends on the amount of their income, into these insurances. Because this is a legal obligation, the insurance is also called “compulsory insurance”. Employers pay a further share. In most cases, their contribution is the same as that of the employees.A special case is accident insurance. The employer has to pay for his employees alone.
What is it Social Security?
What is Social Security in simple terms?
What is the main purpose of Social Security?