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Planned increase in social contribution for high-earning workers, set to take effect in 2026

Annually, the minimum income level that incurs social contributions gets adjusted in accordance with wage growth. So, what does this mean for workers?

Planned increase in social contributions for high-earning employees, starting from 2026
Planned increase in social contributions for high-earning employees, starting from 2026

Planned increase in social contribution for high-earning workers, set to take effect in 2026

In a bid to address the financial strain faced by statutory health insurers, the health expert of the Social Democratic Party (SPD), Christos Pantazis, has proposed that high earners should contribute more to the health insurance system.

Pantazis believes that an increase in contributions from high earners is necessary to help stabilise the financial situation of the insurers. The proposed increase would follow the model of the statutory pension insurance, where earnings above a certain ceiling are not taken into account for contribution calculations.

The contribution assessment ceiling in the pension insurance is the maximum amount of gross income up to which contributions are levied. Pantazis has suggested an increase in this ceiling by around 2,500 euros.

Janosch Dahmen, the health policy spokesman of the Greens, has also backed the call for an increase in contributions. He suggests that the increase should be gradual and reach the level of the statutory pension insurance. Dahmen also advocates for structural reforms alongside the increase in contributions.

However, the specific individual insurance types proposed by SPD and Green politicians for increasing contributions from higher income groups in social insurance remain unclear from the available search results. It is expected that further discussions and details will be presented in due course.

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