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The Effects of Germany’s Minimum Income Provisions for the Elderly and its Policy Implications

Lee, Jung Woo 1

1인제대학교

Accredited

ABSTRACT

Since Germany first introduced minimum income provisions in 2003, the countryhas implemented this system for 10 years. The evaluation of its performance hasbeen positive. The implications of Germany’s experience with the operation ofminimum income provisions for the elderly are as follows:First, Germany has operated minimum income provisions while strictly separatingthe system from the national pension system. The purpose of this measure was toprevent side effects in advance, such as the lack of understanding and trusting thesystem due to the mixture of different principles. Second, the management and operation of Germany’s minimum income provisionshas been led by the Social Assistance Agency. Meanwhile, only specific tasks stipulatedunder the law are performed in conjunction with the National PensionService. Third, Germany’s minimum income provisions for the elderly have established acomprehensive pay system to help the recipients to practically maintain their basiclivelihood: In detail, the minimum income provisions ① are calculated based onbasic living expenses, ② operate various types of pay by considering differentiatedneeds of individuals, and ③ enable simultaneous applications for the respectivepay and other pays under the nation’s social assistance system as the system has been integrated into social assistance system. Fourth, to reduce the financial burden of local governments for the operation ofminimum income provisions for the elderly, the federal government has financiallysupported local governments more than its official share of assistance.

Citation status

* References for papers published after 2023 are currently being built.