Enhanced social contributions for well-compensated employees will be implemented from the year 2026
Employees across Germany are expressing frustration due to the feeling that they're barely getting ahead, despite their hard work, according to Dennis Radtke, chairman of the Christian Democratic Workers' Association of Germany.
This sentiment arises as the expenditure of the approximately 90 health insurance funds increased by 7.95% to 166.1 billion euros in the first half of the year. This growth has led to a rise in the average additional contributions for health insurance, which stood at 2.9% at the beginning of the year.
Reiner Holznagel, president of the Federal Association of Taxpayers, has suggested cuts in social benefits instead of always raising limits to alleviate the strain on the health insurance funds. Christos Pantazis, SPD health expert, and Janosch Dahmen, health policy spokesman of the Greens, have proposed that high earners should pay more into the statutory health insurance to stabilize the financial situation of the insurers.
The planned contribution assessment ceilings for 2026 are:
- 101,400 euros annually for general pension insurance
- 8,450 euros monthly for pension and unemployment insurance
- 69,750 euros annually (5,812.50 euros monthly) for statutory health and long-term care insurance
- The compulsory insurance threshold in health insurance will rise to 77,400 euros annually (6,450 euros monthly)
The contribution assessment ceiling in the pension insurance is the maximum amount of gross income up to which contributions to the statutory system of old-age provision are levied. Income above the contribution assessment ceiling is not taken into account for the calculation of pension insurance contributions.
The total contribution to health insurance, shared by employees and employers, is a uniform rate of 14.6% of gross salary. Many employees may be hit twice due to the increase in the assessment ceiling and the looming increase in additional contributions in the SHI.
Dennis Radtke stated that the federal government has little room for maneuver in the development of wages. The compulsory insurance threshold for statutory health insurance is planned to be raised from the current 6,150 euros of gross monthly income to 6,450 euros in 2026.
The draft regulation for the contribution assessment ceilings for 2026 was sent by the Federal Ministry of Labour for consultation to other departments on Friday. No new information about Christos Pantazis or Janosch Dahmen was provided in this paragraph.
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