Cost of living in German towns

Bibliographic data

Monograph

Identifikator:: 866449027

URN:: urn:nbn:de:zbw-retromon-93831

Document type:: Monograph

Title:: Cost of living in German towns

Place of publication:: London

Publisher:: Stat. Off.

Year of publication:: 1908

Scope:: 1 Online-Ressource (LXI, 548 Seiten)

Collection:: Economics Books

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XXX in 54-hour week is universal, whilst on the other haiyl for municipal employees 60 hours must be taken as the normal working week. Deductions from Waqes in respect of Workmen's Insurance.—A factor of considerable importance in the labour conditions of Germany is the existence of a system of compulsory working-class insurance against accidents, sickness, infirmity, and old age, part of the cost of which has to be borne by the workpeople, inasmuch as they are compelled to submit to the deduction from their wages of certain sums as insurance premiums. In the case of accident insurance the law requires that the whole of the cost be borne by the employer, who, for this purpose, is required to join one of the trade associations for mutual insurance (Berufsgenossenschaften), at present 66 in number, formed in compliance with this law. But although the employer is prohibited from deducting anything from the wages of his workpeople in respect of this branch of insurance, part of the cost is nevertheless borne by the latter, since during the first 13 weeks after an accident the expenses arising therefrom fall upon the Sickness Insurance Fund, i.e., upon a fund to which the workman is bound to contribute. Under the Sickness Insurance Law two-thirds of the cost of insurance has to be borne by the worker and one-third by the employer. The latter is responsible for the payment of the whole premium, but may deduct two-thirds of the amount from the worker’s wages at the next pay-day. The amount of the worker’s share may not be less than 1 per cent, and not more than 4 per cent, of his wages. The actual amounts vary in the different kinds of funds recognised under this law, but about 87 per cent, of the workmen insured are insured in funds to which their contributions may not be less than 3 or more than 4 per cent, of their wages ; probably 3^ per cent, may be taken as the normal amount. For this the benefits received are (1) free medical treatment and sick-pay (one-half the average earnings) for 26 weeks ; or (2) hospital maintenance and one-quarter of the average earnings (the money being paid to dependents) ; and (3) funeral money. In the case of infirmity and old age pensions the law fixes the actual amount of the premium at a figure which varies according to the wage class to which the insured worker belongs, five such classes being distinguished. The classes and weekly premiums are as follows :— Wage Class. I. II. III. IV. V. Limits of Yearly Earnings. Up to £17 10s. Over £17 10s. and under £27 10s. „ £27 10s. „ £42 10s. „ £42 10s. „ £57 10s. Over £57 10s. Weekly Premiums. 1-7 d. 2'4d. 29d. 36d. 4-3 d. One-half of the contribution has to be paid by the employer ; in practice he pays the whole and deducts the workers’ share from the wages at the next pay-day. Thus, in the two highest wages-classes—to which the majority of adult working-men belong—the weekly contributions actually paid by the workmen are P8& in Class IV. and 2'2d. in Class V. A minimum of forty contributory weeks is required in each year. A pension lor permanent incapacity (i.e., inability to earn one-third of the current local rate of wages) can be claimed at the end of two hundred contributory weeks ; old age pensions can be claimed first at 70 years of age. From the above data it may approximately be calculated that the com pulsory deductions from weekly wages for insurance premiums (estimating the sickness insurance premium at 3^ per cent.) are for a wage of 20s. a week- 10-2d. ; for 25s. a week, 12'7d. ; for 30s. a week, 14-8d. ; and for 35s. a week, 16’9d. On the whole the ratio of insurance contributions to wages may be taken at something over 4 per cent. In the case of the workers engaged in coal, lignite, metalliferous, and salt mines in Prussia in 1906, the total in surance deductions amounted to 4 9 per cent, of the total earnings, but this higher rate may be due to the fact that in the mining industry, which is separately organised for insurance purposes, the men voluntarily contribute a little more than 1fie law requires, and get correspondingly higher benefits. 3908$

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