HC Deb 06 June 1930 vol 239 cc2573-4W
sir G. JONES

asked the Minister of Labour what is the total cost of unemployment insurance in Germany per annum; in what proportion it is respectively met by employed, employers, and public funds; and what is the total number of workpeople covered by such insurance?


The total expenditure (including all benefit payments, the cost of the public Employment Exchanges, and general administrative expenses) on unemployment insurance in Germany was 1,163.9 million Reichsmarks in 1928, and 1,579.7 million Reichsmarks in 1929. The costs of standard unemployment benefit and of the Employment Exchange system, and administrative expenses, are met out of equal contributions from employers and workers, any deficiency being made up by loans from the Federal Exchequer. The cost of emergency benefit is borne as to four-fifths by the Federal Exaequer and as to one-fifth by the local authorities. Early in 1929 a special scheme for the payment of benefit to unemployed seasonal workers was in operation, the costs of which were borne as to four-fifths by the Reich, the remaining fifth being met out of income from insurance contributions. The total number of workers insured against unemployment at the end of 1929 was approximately 17,000,000.


asked the Minister of Labour what is the amount of benefit paid to an unemployed workman under the German unemployment insurance system; and under what conditions and during what period is benefit so paid?


The amount of benefit paid to an unemployed worker under the German unemployment insurance system varies according to the wage class to which he belongs and the number of his dependants. Insured persons, without distinction of age or sex, are grouped under eleven wage classes, Class I including workers in receipt of weekly wages not exceeding 10 Reichsmarks, while Class XI comprises those whose weekly wages exceed 60 Reichsmarks. For each wage class a unit wage has been fixed, ranging from 8 Reichsmarks in Class I to 63 Reichsmarks in Class XI. The amount of weekly benefit is assessed as a percentage of the unit wage, varying from 75 per cent. in Class I to 35 per cent. in Classes VIII to XI for workers without dependants in respect of whom dependants' allowances are payable: this is increased by 5 per cent. of the unit wage for each such dependant, subject, however, to a maximum rate, which ranges from 80 per cent. of the unit wage in Class I to 60 per cent. in Classes VIII to XI. Thus the lowest weekly rate of benefit is 6 Reichsmarks (or the amount of the wage if less than 6 Reichsmarks) for a worker without dependants, and the highest weekly rate is 37.8 Reichsmarks for a worker with five or more dependants. The conditions under which benefit is paid and the period for which it is paid are set out in two articles in the issues of the Ministry of Labour Gazette for August, 1927, and December, 1929, copies of which I am sending to the hon. Member.