In 2025, the German state increased its expenditure on monetary social benefits designed to secure risks to society. According to the Federal Statistical Office (Destatis), these monetary social payments climbed 5.9% compared to 2024, reaching €751.2 billion, an increase of €41.7 billion.
While this rise was above the 1991-long-term average of 3.4%, it was less pronounced than in the two preceding years (which saw hikes of 7.4% in 2024 and 6.9% in 2023). Given that consumer prices rose noticeably weaker in 2025 (at +2.2%), this increase translates into a real growth in monetary social welfare.
Although social benefits grew at 5.7% in 2025, only slightly slower than the benefits themselves, their share of overall state spending held steady at 33.2% compared to the previous year.
The expenditure on social benefits saw varied developments across different programs. Aid from the German Pension Insurance rose by 5.9%, reaching €417.9 billion (an increase of €23.2 billion). Public pensions grew by 5.1%, increasing to €95.0 billion.
Growth was particularly robust in benefits responding to labor market changes. Due to rising unemployment, Unemployment Benefit I saw a significant jump of 19.1%, collecting €28.2 billion (+€4.5 billion). State subsidies for professional development also surged by 19.4%, amounting to €7.2 billion (+€1.2 billion).
Other major categories showed strong increases: Housing benefits saw the most dramatic rise, increasing by 26.7% to reach €5.0 billion (+€1.1 billion). Care benefits increased by 13.1% to €31.9 billion (+€3.7 billion), while sickness benefits rose by 5.0% to €22.3 billion (+€1.1 billion), and social assistance increased by 7.8% to €44.4 billion (+€3.2 billion). In contrast, the basic allowance (Bürgergeld), which functions as basic income since July 2026, experienced a slight decline of 1.5%, falling to €29.4 billion (-€0.4 billion).
The trajectory of social benefits is influenced by more than just statutory expansions or reductions; it is also affected by numerous external factors, such as the state of the labor market, employment participation rates, the rate of inflation, and overall demographic changes, including migration.
