Concerns are being raised over the increasing delegation of responsibilities to social insurance bodies, according to Verena Bentele, President of the VdK, a prominent social welfare association. Bentele argues that social policy is struggling to keep pace with emerging challenges, a situation she describes as a consequence of prioritizing cuts to the social welfare system while substantial funds are allocated elsewhere.
“The myth of an excessively bloated social state needs to be dispelled” Bentele stated in an interview. “The social security contribution rate has remained consistently around 30 percent over the past decades.
Data indicates that Germany’s position in international comparisons isn’t overtly concerning. According to Bentele, Germany currently ranks seventh out of 18 wealthy OECD nations when considering the proportion of state social expenditure to Gross Domestic Product.
Bentele attributes the perceived imbalance not to the social cost itself, but to the political discourse and media portrayal surrounding it. The association highlights a growing trend of shifting overall societal responsibilities – typically financed through general taxation – onto social insurance bodies. This transfer, the VdK contends, is driving up contribution rates. They estimate that if these responsibilities were appropriately funded through the federal budget, social security contributions could realistically be reduced by more than four percentage points.
To address this, the VdK is advocating for a more equitable tax policy. Their proposal includes a one percent tax on assets exceeding five million euros and a two percent tax on assets exceeding 100 million euros. The association estimates this measure could generate approximately 40 billion euros in revenue, affecting roughly 300,000 individuals with significant wealth.