What is the social security and pension insurance number?
The social security number (Sozialversicherungsnummer), also known as the pension insurance number (Rentenversicherungsnummer), was introduced in 1964. It is the unique identifier of every person in the statutory pension insurance scheme. The number stays with the insured person for life. It is used for pensions and in other areas of social protection, for example social assistance or basic income support for jobseekers.
The number is made up of several parts:
- Area number of the pension insurance provider (digits 1-2): This number varies by region.
- Date of birth (digits 3-8): It is encoded in the number.
- First letter of the birth name (digit 9): The first letter of the birth name is included.
- Serial number (digits 10-11): It also contains information on the insured person's sex.
- Check digit (digit 12): Used to verify that the number is correct.
Why does the social security number matter for employers?
Employers need their employees' social security numbers for social security notifications, in particular the social security notification under the DEÜV (Datenerfassungs- und Übermittlungsverordnung, DEÜV-Meldung). This notification is needed to register new employees correctly with the social security providers. Without the social security number, the notification is incomplete. This can delay payroll or lead to incorrect notifications.
The social security number also ensures that pension contributions are assigned to the right person. Other relevant data, such as the correct date of birth, can then be processed smoothly. Incorrect or duplicate social security numbers can cause administrative problems and should be corrected immediately.
Electronic retrieval of the social security number
Since 1 July 2016, employers have been able to retrieve their employees' social security numbers electronically from the pension insurance data centre (Datenstelle der Rentenversicherung, DSRV). This process was introduced to replace manual entry and reduce administrative work. In the past, employees often had to provide their social security number on paper. This requirement no longer applies today.
Legal rules on the social security number
The allocation and management of the social security number are governed by § 147 of Book VI of the Social Code (SGB VI). From 1 January 2023, the legal rules were extended to improve the allocation process and the correction of incorrect numbers. These measures are meant to ensure that every insured person receives a unique and correct number. This avoids mix-ups and administrative problems.
Why was electronic retrieval introduced?
Before electronic retrieval of the insurance number became mandatory, employers could already retrieve it on a voluntary basis. Few of them used this option, though. According to statistics, only 1.6 million of 19 million DEÜV registrations in 2022 included an electronic number request. As a result, many registrations contained incorrect or incomplete data that had to be corrected later.
So electronic retrieval was introduced to:
- Minimise input errors: Entering insurance numbers by hand carries a higher risk of typos and other inaccuracies.
- Reduce administrative work: Automated retrieval takes work off both employers and pension insurance providers.
- Increase efficiency: The process becomes faster and more reliable. This ensures a smooth process, especially when hiring new employees.
How does electronic retrieval of the insurance number work?
There are two ways to retrieve the number:
- Payroll software: Most employers today use specialised payroll software that builds retrieval of the social security number seamlessly into the payroll accounting process.
- SV-Meldeportal: Alternatively, employers can retrieve the number through the SV-Meldeportal (social security reporting portal).
Before a DEÜV notification can be created, the employer checks the employee's data and retrieves the pension insurance number from the pension insurance data centre (DSRV). Ideally, the process takes only a few minutes. If no insurance number exists, an application for a new number is filed automatically. Details such as birth name, place of birth and country of birth are mandatory for this.
No more need to show the social security card
Before electronic retrieval was introduced, employees starting a new job often had to show their social security card (Sozialversicherungsausweis) as proof of their insurance number. Thanks to electronic retrieval, this paperwork is no longer needed. Employers can request the number directly from the pension insurance provider. This makes hiring much simpler for employers and employees alike.
Conclusion
The social security number is an essential part of the German social security system. It enables efficient administration and identification of insured people, in the pension insurance scheme and in other areas of social protection. Electronic retrieval and clear legal rules make handling this number simpler and more secure. For employers and employees, this means less red tape and more reliable data management.
