Financial Handbook for Germany

personal, business and public sectors

Germany’s social spending: trends, structure and key figures

Data on Germany’s social spending, covering funding of social protection and the labour market, spending trends, expenditure structure and current indicators.


Social spending: current figures

Please note that the spending on “Social spending” in this article refers to the money allocated from the federal budget to the relevant ministry, “Bundesministerium für Arbeit und Soziales”, as a whole. This means the amounts shown include all funding for the ministry, covering every programme and administrative cost, not just specific projects within this area.

In 2026, federal budget spending on Ministry for Employment and Social Affairs is 197 billion euros 1. This is about 37.62% of total federal spending.

Compared to the previous year, funding has increased by 3.7%. This change reflects current budget priorities and economic conditions.

Social spending in the budget: spending structure

Funding for “Social spending” is divided between different programmes and categories. The spending structure shows which areas receive the most money and which are considered priorities within this field.

The table below breaks down spending by main categories. This helps you see which programmes are funded most and how the money is distributed in this area.

Table 1. German federal budget spending in 2026
for Bundesministerium für Arbeit und Soziales 2

Type of spending Spending
million euros
% of total
Leistungen nach dem Zweiten und Dritten Buch Sozialgesetzbuch und gleichartige Leistungen 55,498.9 28.12%
Rentenversicherung und Grundsicherung im Alter und bei Erwerbsminderung 140,009.6 70.95%
Soziale Entschädigung (Kriegsopferversorgung und -fürsorge sowie gleichartige Leistungen) 421.1 0.21%
Unfallversicherung Bund und Bahn / Künstlersozialkasse 451.9 0.23%
Förderung der Inklusion von Menschen mit Behinderungen 323.8 0.16%
Maßnahmen des Bundes mit Beteiligung Europäischer Fonds (ESF, EGF, EHAP) sowie sonstige internationale Angelegenheiten 183.7 0.09%
Arbeitswelt im Wandel, Fachkräftesicherung 25.3 0.01%
Sonstige Bewilligungen 3.0 0.00%
Zentral veranschlagte Verwaltungseinnahmen und -ausgaben -54.9 -0.03%
Bundesministerium 214.3 0.11%
Bundesanstalt für Arbeitsschutz und Arbeitsmedizin 96.5 0.05%
Bundesarbeitsgericht 21.9 0.01%
Bundessozialgericht 27.3 0.01%
Bundesamt für Soziale Sicherung 87.3 0.04%
Die Beauftragte der Bundesregierung für Migration, Flüchtlinge und Integration. Die Beauftragte der Bundesregierung für Antirassismus 31.3 0.02%
TOTAL: 197,341.0 100.00

Yearly changes in spending

To show long-term trends, below are figures for spending on Ministry for Employment and Social Affairs over the last 10 years. This lets you see if current changes are temporary or part of a steady trend.

Table 2. Changes in German federal budget spending on Ministry for Employment and Social Affairs for the last 10 years, from 2017 to 2026 3

Year Spending
billion euros
Change from previous year
billion euros and %
Change from 2017
billion euros and %
2017 137.6 - - 0.0 0.00%
2018 139.2 1.6 1.16% 1.6 1.16%
2019 145.3 6.1 4.37% 7.7 5.58%
2020 150.2 5.0 3.42% 12.6 9.19%
2021 164.9 14.7 9.78% 27.3 19.87%
2022 161.1 -3.8 -2.33% 23.5 17.08%
2023 166.2 5.1 3.20% 28.6 20.82%
2024 171.7 5.4 3.28% 34.1 24.78%
2025 190.3 18.7 10.87% 52.8 38.35%
2026 197.3 7.0 3.68% 59.8 43.43%

Germany’s social spending, analysis, current situation

In 2026, federal budget spending on labour and social policy through the Bundesministerium für Arbeit und Soziales (Federal Ministry of Labour and Social Affairs) is about 197 billion euros, making it the largest ministry by budget in Germany. This is nearly 37.62% of all federal spending this year, showing how important social policy is in the government’s financial plans.

The biggest part of this money goes to supporting the pension system – federal subsidies for statutory pension payments remain the main expense for this ministry. It also covers basic social security payments, including unemployment benefits and basic social benefits for people who need support.

In recent years, funding for social programmes has steadily increased. This is due to an ageing population, higher pension obligations and rising costs for basic social support. In 2026, the ministry’s budget grew compared to last year and remains a stable part of the overall budget, showing that social support continues to be a priority and that the government is meeting its commitments to citizens.

Notes on data sources

  1. Total spending in 2026: Data taken from the official publication of the federal budget law in Bundesgesetzblatt (Haushaltsgesetz 2026 – HG 2026)
  2. Note on Table 1: Data taken from the official publication of the federal budget plan Bundeshaushaltsplan 2026
  3. Note on Tables 1 and 2: The figures shown are SOLL-Werte — planned spending figures approved by law for each year. They show officially planned amounts rather than final actual spending. If changes are needed during the year, a Nachtragshaushalt — a supplementary (amended) budget — can be passed. This adjusts spending according to new economic conditions. Any such changes are already included in these tables if they were made. Since budgets can be officially updated during the year if needed, final actual spending usually does not differ much from these revised planned figures. This means SOLL-values can be used as a reliable guide for analysing budget trends.

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