Gender impact of German social policy proposals

Recent studies in Germany highlight how proposed changes to social and pension policies may disproportionately affect women.

A report from the German Institute for Economic Research (DIW) examined a pension reform proposal from the Union political group. The plan seeks to restrict early retirement eligibility to years of active employment, excluding periods of childcare, unemployment, and family care. The DIW calculated that 52.1 percent of women in a specific birth cohort would lose early retirement eligibility under this plan, while only 0.5 percent of men would be affected.

Further analysis by the German Women's Council and Dezernat Zukunft regarding the 2027 federal budget indicates that planned social spending reductions will also impact women unevenly. Of the 8.4 billion euro in total planned reductions, approximately 5 billion euros are expected to affect women. Targeted areas include childcare services, housing allowances, child supplements, maintenance advances, and long-term care.

The German Tenants' Association has expressed opposition to housing allowance reductions, noting that approximately 400,000 households could lose subsidies due to planned changes in income calculation and heating cost components. Researchers attribute these gendered impacts to the unequal distribution of unpaid care work, noting that women perform an average of nine more hours of childcare, nursing, and household duties per week than men. This often leads to part-time employment and lower lifetime earnings. The study suggests that investing in childcare infrastructure and reforming marriage tax splitting could increase female employment by 209,000 full-time equivalents, potentially relieving the public budget by 4.5 billion euros by 2031.