The paper shows the fundamentals of social security funds and discusses possible solutions of it's long-term financing. For avoiding negative impact on economic growth and the resources of financing, contributions for the insurance fund should be taken as premiums on salaries and wages....

The results of an econometric model show that the increase of one percent of the social security contribution leads approximately to an increase of unemployment of about 100,000. The plan to rise the contributions for the health insurance fund for future therefore should be abandoned. This is...

The German version of this paper can be found at http://ssrn.com/abstract=2043039The paper shows the fundamentals of social security funds as important criteria for the cost apportionment of contributions paid by employees and manual workers and of contributions paid by the government for...