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Social Code

Last Update: 04. Sep 2025

Definition and Basics of the Social Code

Das Social Code (SGB) is the central codification of social law in Germany. It governs social law in 12 independent books, ranging from basic security to statutory pension insurance and social long-term care insurance. The SGB was created with the aim of making citizens’ social rights, as well as the responsibilities and procedures of social benefit providers, clear, transparent, and uniform.

The Social Code forms the fundamental legal source for social security in Germany, structures the different social benefits, and defines the eligibility requirements, benefits, providers, procedures, and legal protection possibilities. It follows the principles of the social state as set out in Article 20(1) of the Basic Law.

Historical Development of the Social Code

Origin and Development

The Social Code arose from the need for a unified and systematic compilation of fragmented social law. The codification began in 1975 with the entry into force of the First Book of the Social Code (SGB I). Previously, various social security systems were governed by individual laws:

Reich Insurance Code (RVO)
Employees’ Insurance Act (AVG)
Invalidity Insurance Act (IVG)
Employment Promotion Act (AFG)

The SGB gradually replaced and unified these regulations.

Structure of the Books

The step-by-step introduction of the individual SGB books has taken place since 1975. Today, the Social Code consists of twelve books (SGB I to SGB XII).

Systematics and Structure of the Social Code

Structure

The SGB is divided into twelve independent books:

SGB I: General Part
SGB II: Basic Security for Job Seekers
SGB III: Employment Promotion
SGB IV: Common Provisions for Social Insurance
SGB V: Statutory Health Insurance
SGB VI: Statutory Pension Insurance
SGB VII: Statutory Accident Insurance
SGB VIII: Child and Youth Welfare
SGB IX: Rehabilitation and Participation of Disabled Persons
SGB X: Social Administration Procedure and Social Data Protection
SGB XI: Social Long-Term Care Insurance
SGB XII: Social Assistance

Each book governs its own area of social law across all associations and contains independent eligibility provisions, benefit requirements, procedural rules, and responsibilities.

Systematic Cross-References

There are extensive references and conceptual and systematic cross-links between the books. Basic definitions and provisions of social law are governed by SGB I and SGB IV and apply to all books. Procedural rules and data protection provisions are especially regulated in SGB X and are binding for all social benefit providers.

Substantive Legal Foundations in the Social Code

Basic Principles

The Social Code is guided by central principles of social law:

Meeting Needs: Securing the minimum level of subsistence
Solidarity: Risk sharing within the insured community
Subsidiarity: Primacy and subsidiarity of state benefits
Personal Responsibility: Promoting self-initiative and self-help

Types of Benefits

The SGB distinguishes between different types of social benefits:

Cash benefits (e.g., unemployment benefits, pension, social assistance)
Benefits in kind (e.g., medical treatments, aids)
Services (e.g., advice, support)

The respective requirements, duration, amount, and type of benefits are specifically governed in each book.

Institutional System and Sponsorship

Providers of Social Benefits

The social benefits regulated by the SGB are provided by various public service providers, public law corporations, public institutions, or associations. Examples:

Health insurance providers (health insurance funds)
Pension insurance providers (German Pension Insurance)
Providers of employment services (Federal Employment Agency)
Accident insurance providers (professional associations)
Social welfare offices, youth welfare offices

The responsibility is determined by the relevant SGB book and the implementing provisions.

Financing

The financing of the benefits regulated in the SGB varies according to the insurance system:

Pay-as-you-go system: For statutory pension, health, and unemployment insurance
Tax financing: For social assistance or basic security

The model and scope of financing are specified in the relevant books.

Procedural Law and Legal Protection

Administrative Procedure

SGB X regulates administrative procedures in social matters. Important aspects are:

Filing an application
Duties of cooperation and disclosure by beneficiaries
Official investigation principle
Right to inspect files
Notification of administrative acts

Social benefits are generally granted upon application. In the decision process, claims are reviewed, approved, or denied.

Legal Remedies and Legal Protection

Objections can be filed against notifications and decisions of the benefit providers. The objection procedure is a mandatory preliminary step. Afterwards, it is possible to file a lawsuit before the social courts. The social jurisdiction is responsible for disputes in all areas of the SGB:

Social courts (first instance)
Regional social courts (court of appeal)
Federal Social Court (court of revision)

Significance and Scope of Application

Scope of Application

The Social Code applies to all people living or working in Germany who, according to the statutory provisions, have a social legal need or are entitled to social benefits. It is mandatory law from which, as a rule, deviations are not permitted.

Relevance in the German Social System

The SGB provides the comprehensive basis for the entire system of social security in Germany and significantly affects the lives of millions. It ensures protection against social risks, promotes participation in social life, and implements the constitutional requirements of the social state principle.

Overview: The Twelve Books of the Social Code

Reforms and Further Development of the Social Code

The Social Code is subject to continual adjustment. Essential reforms such as the introduction of basic security for job seekers in SGB II (Hartz IV) or the introduction of social long-term care insurance in SGB XI reflect social change and political priorities. The increasing digitalization of administration and integration with European law also necessitate ongoing amendments and additions.

Frequently Asked Questions

How is the Social Code (SGB) systematically structured and what is the significance of this structure for legal application?

The Social Code is divided into several books (SGB I to SGB XII), each of which governs different areas of social law. This systematic division makes it easier for authorities, courts, and those seeking advice to apply and interpret social law. Each book deals with specific topics—for example, SGB II regulates basic security for job seekers (Hartz IV), SGB V statutory health insurance, SGB VI statutory pension insurance, and SGB VIII child and youth welfare. The structure is intended to present the numerous and complex provisions in a clear and manageable way. For legal application, this means that responsible benefit providers and authorities are assigned precisely to the respective book and its specific provisions. Moreover, different social courts are responsible for disputes arising from each book. Cross-references between the books ensure the creation of a unified legal framework and prevent duplicate regulation. For both laypeople and professionals, this structure provides transparency and legal certainty.

What is the significance of references and cross-references within the Social Code for legal practice?

References and cross-references are an essential tool in the Social Code for linking different areas of regulation. They make it possible to establish generally applicable provisions or definitions centrally in one place, which multiple books can reference. This applies to, for example, definitions, procedural rules, or requirements for providing benefits. In practice, this means that when applying a provision, it must always be checked whether other relevant rules from different books apply or are adopted. For instance, special benefit laws often refer to the general rules of SGB I (General Part) or SGB X (Social Administration Procedure and Data Protection). In legal disputes, disagreements about the interpretation of such cross-references are not uncommon and often require comprehensive judicial clarification.

What effects do changes in the Social Code have on ongoing or already approved benefits?

Changes in the Social Code (such as legislative amendments by lawmakers or adjustments resulting from supreme court decisions) can directly impact ongoing cases of social benefits. Generally, however, the so-called cut-off date principle applies: For benefits that have already been approved, the law in force at the time of approval must be applied, unless the law expressly provides for retroactive effect. For adjustments in long-term benefits cases (for example, pensions or basic security), ongoing benefits are often recalculated based on the new legal situation. In this context, benefit providers are required by law to review and, if necessary, reclaim or pay additional benefits, provided this is expressly stipulated by law. It is therefore important for those affected to be aware of changes in the Social Code and to have their claims reviewed if necessary. The right to object and to bring legal action remain unaffected by changes in the law unless there are different transitional provisions.

How does the objection procedure work in the context of the Social Code, and what time limits must be observed?

The objection procedure is a mandatory extrajudicial legal remedy against administrative acts in social law, such as decisions on social benefits. It is governed in detail by SGB X. After a detrimental decision has been served, those affected have one month to submit an objection in writing or for the record at the competent authority. If the authority has not properly notified the decision, the deadline extends to one year. During the objection procedure, the authority internally reviews its decision once more. If the objection is not resolved, the authority issues a formal objection decision, against which an action may be brought before the competent social court within one month. There is no requirement to be represented by a lawyer during this procedure, but legal advice can be useful to fully protect one’s rights.

What role do social courts play in disputes relating to the Social Code?

Social courts are specialized courts that are exclusively responsible for public-law disputes concerning social benefits. Their jurisdiction covers all disputes arising from the individual books of the SGB, including pension law, health insurance law, and basic security. Social courts not only review whether the contested administrative acts are formally and substantively lawful, but also whether the underlying procedure was properly conducted and the statutory requirements of the asserted claims are met. Proceedings are free of court costs for the plaintiffs unless there are cases of abuse or special procedures. The levels of jurisdiction are social court, regional social court, and Federal Social Court. Rulings from the social courts often set standards for administrative practice and have an impact beyond the individual case, such as clarifying indeterminate legal concepts or issues of interpretation within the SGB.

According to the Social Code, who is entitled to benefits and how is the distinction made against those not entitled?

Eligibility for benefits under the Social Code is determined by the specific provisions of the respective book in which the applied-for benefit is regulated. These are generally personal requirements such as age, capacity for gainful employment, residence status, insurance status, neediness, or health characteristics. Each SGB book defines the prerequisites differently: for example, assistance toward subsistence (SGB XII) is aimed at persons in need who are not capable of working, whereas SGB II refers to able-bodied persons in need of assistance. It is also important whether an exclusion reason exists, such as for permanently fully incapacitated persons under SGB II. The distinction is made through complex examinations of individual circumstances by the competent authorities and is often subject to judicial review. In borderline cases, the correct interpretation of the so-called elements of the offence is particularly decisive. A denial of eligibility for benefits must always be thoroughly substantiated and capable of being reviewed by a court.

How does the social confidentiality obligation pursuant to § 35 SGB I and SGB X affect the processing of personal data in connection with social benefit claims?

The obligation of social confidentiality requires benefit agencies to treat all information received in the course of their duties confidentially. Legally, this obligation is regulated by § 35 SGB I and §§ 67 et seq. SGB X. Accordingly, social data may generally only be collected, processed, or used if there is an explicit statutory authorization. In practice, this affects all procedures in connection with social benefits: as a rule, the consent of the affected person must be obtained if data are to be exchanged between different authorities. Violations of data protection law can not only lead to civil claims for damages, but also to regulatory or criminal consequences for the authority or the involved employees. Social confidentiality therefore plays a central role in protecting the personal rights of benefit recipients and is of fundamental importance for the lawful implementation of all social benefit procedures.

Further term explanations

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