Germany's Social Security Burden Shifts from Employers to Workers Over 25 Years
A new analysis reveals a steady shift in Germany's social contribution burdens over the past 25 years. Employers now pay less into the ssa system, while employees shoulder more of the cost. The findings, first reported by Der Spiegel, were commissioned by Heidi Reichinnek, leader of the Left Party's parliamentary group.
The Federal Statistical Office examined traditional social insurance contributions as well as other employer obligations. These included continued wage payments during sick leave and company pension commitments. The data shows a clear trend: the employers' share of contributions fell from 19.2% in 1999 to 17.7% in 2024.
Meanwhile, employees saw their share rise from 12.3% to 13.8% over the same period. This amounts to a 1.5 percentage point shift in both directions. The analysis also noted that, unlike in other EU countries, Germany's employer contributions have remained relatively stable since 1991, hovering around 20-21% of gross wages.
Reichinnek criticised the conservative CDU/CSU alliance for pushing social spending cuts. She also highlighted employers' repeated complaints about high contribution burdens, despite the data showing a long-term reduction in their share.
The report underscores a gradual transfer of social contribution costs from employers to workers. Since 1999, the gap between the two shares has narrowed by 3 percentage points. The findings provide a factual basis for ongoing debates about labour costs and welfare funding in Germany.
