Social assistance spending rises 6.1% in 2025
German social assistance spending under SGB XII rose 6.1% to €21.5 billion in 2025, Destatis said on Tuesday.
Source: Federal Statistical Office Germany · August 21, 2026 at 11:00 AM · AI-assisted report
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KUALA LUMPUR, 21 AUGUST 2026 —
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German Social Assistance Spending Rises 6.1% to €21.5 Billion in 2025
Market Impact
KUALA LUMPUR – German social assistance spending under the Social Security Code XII (SGB XII) increased 6.1% to €21.5 billion (RM107.5 billion) in 2025, according to data released by Destatis on Tuesday.
The rise in expenditure follows a 2.9% increase in allocations for basic income support for the elderly and disabled, which accounted for 54.9% of total social assistance spending at €11.8 billion. However, this marked the third consecutive year of declining share, down from 59.0% in 2022. Spending on nursing care assistance surged 13.3% to €6 billion, representing 27.8% of total outlays, up from 23.6% in 2022.
Meanwhile, assistance for livelihoods rose 4.4% to €1.7 billion, while health-related and other social support services received €2 billion, a 6.7% increase from 2024. Notably, monthly living allowance rates remained unchanged in 2025, ending a streak of annual increases since 2011.
The figures exclude unemployment benefits under SGB II (Bürgergeld) and integration assistance under SGB IX, which were transferred to separate frameworks in 2020.
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Outlook Analysts expect continued pressure on Germany’s social welfare budget amid demographic shifts, though the stabilization of living allowance rates may ease short-term expenditure growth. Further breakdowns on federal reimbursements to states are expected in upcoming reports.