Gesamtmetall head proposes capping unemployment benefits at 12 months

Udo Dinglreiter, president of the German employer association Gesamtmetall, is calling for significant savings within the German social security system to reduce non-wage labor costs. A primary proposal is to cap the duration of unemployment benefits (ALG I) at a uniform twelve months. Currently, benefits are paid for a period ranging from six to 24 months, depending on the recipient's age and previous insurance history.

Dinglreiter estimates that limiting the benefit period to twelve months would generate approximately three billion euros in savings. He argues that the total social security contribution rate must drop from the current 42 percent to 40 percent, which would require total system savings of between 40 and 50 billion euros.

To achieve these reductions, Dinglreiter suggests targeting inefficiencies, specifically pointing to the healthcare sector. He noted that savings are necessary among service providers, such as doctors, clinics, and therapists, to ensure the sustainability of the social market economy.