Social Security Abroad
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چکیده
The present German soc~J secul.lty pension system, maugurated m 1957, mcorporetes rm mdexmg-of-earnmgs process that has generated nxcreasmg mtewt m recent years Because of this mterest m the details of the warlugs of the process, It IS described here When the German vorker retxes, lus hfetune earnmgs record (average annual wage) 1s established and then calculated as a percentage of R standard n&anal wage base used m det,ermmmng all old-age benefits The result is apphed to the benefit formula to produce the norker’s own benefit amount The sun of the German system IS to enable the benefiaary to mamtam the standard of hvmg to which he was accustomed dunng lus warlang hfe The old-age benefit 1s based on full career earnings, rather than on earmngs durmg the last 20, 10, or 5 years, as in many other countrw Ongmally, this approach was based on the national philosophy that “work makes life sweet” and that hard work should be rewarded In hne with that trachtion, the benefit formula was related to the number of years worked, with an mcrementforeachyearofservxe
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