The draft of the Care Reorganisation Act (PNOG) aims to stabilise the finances of social care insurance and structurally modernise them. The German Chamber of Commerce and Industry (DIHK) considers reforms in prevention, digitalisation and reduction of bureaucracy to be appropriate. However, it criticises that the funding of the reform is once again shifted onto the labour factor – directly impacting labour costs, investments and employment in German companies.

Care policy is economic policy

Social care insurance is not an isolated social policy issue – it has a direct impact on the labour market and competitiveness. Rising social contributions increase additional labour costs, reduce entrepreneurial leeway for investments and impede employment. At the same time, the availability and reliability of care provision determine whether caregiving relatives can remain employed – a crucial factor considering the growing shortage of skilled workers.

The DIHK's Position

DIHK surveys show that rising labour costs are already among the greatest business risks for companies today. Against this background, the German Chamber of Commerce and Industry (DIHK) assesses the draft of the Care Reorganisation Act in a differentiated manner:

Funding and Labour Costs

The draft law intends to help stabilise care finances – but this stabilisation is again paid for through higher additional labour costs. The contributory duty for mini-jobs particularly affects small and medium-sized enterprises, for which minor employment is an important flexibility instrument. Raising the contribution assessment ceiling further increases the cost of employing qualified skilled workers.

The DIHK instead demands that the federal government finance non-insurance benefits – such as pension contributions for caregiving relatives or the free co-insurance of family members – consistently from tax revenues. In the medium term, consideration should be given to decoupling the funding of long-term care insurance from the wage base.

Domestic Care and Workforce Participation

Greater emphasis on domestic care can dampen expenses in the long term. However, the draft weakens the old-age security of caregiving relatives – which could diminish the willingness for domestic care. At the same time, greater reliance on informal care arrangements by relatives impacts the labour force. Insufficient support can reduce workforce participation and further aggravate the skilled labour situation in companies.

Private Provision for Care

The goal outlined in the draft to strengthen privately funded care provision is correct from the DIHK's perspective. However, concrete regulations are missing in the present text of the law. The DIHK demands timely specification, for example through the tax deductibility of private supplementary care insurances or greater flexibility for state-promoted care provision (Pflege-Bahr).

Prevention and Rehabilitation

Measures to prevent and delay care dependency are economically sensible. The draft sets the right impulses here. It is crucial that new control and assessment structures are designed transparently and legally secure – and do not lead to additional administrative effort for care companies.

Digitalisation and Innovation

Expanding digital infrastructures and new care models create efficiency potentials and market opportunities – also for start-ups and medium-sized providers. However, the DIHK urges that funding instruments must be open to technology, unbureaucratic and market-oriented. Too narrow funding criteria can create market access barriers. State framework setting and entrepreneurial responsibility must remain distinct.

Reduction of Bureaucracy and Benefit Law

Measures to simplify benefit law and digitalise administrative procedures are deemed appropriate from the economic standpoint. However, the DIHK warns that new control and case management structures could counteract achieved relief.

Digitalisation and Innovation

Expanding digital infrastructures and new care models create efficiency potentials and market opportunities – also for start-ups and medium-sized providers. However, the DIHK urges that funding instruments must be open to technology, unbureaucratic and market-oriented. Too narrow funding criteria can create market access barriers. State framework setting and entrepreneurial responsibility must remain distinct.

Investment Conditions

Care facilities have limited leeway to absorb cost changes in the short term. Planning and financial security are prerequisites for investments. The DIHK demands that new regulations should be specified early and implemented reliably.

Download

The DIHK's statement from 10 June on the PNOG is available here: