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

In a move aimed at stabilizing the financial situation of insurers, the German government has announced plans to raise the contribution assessment ceilings for both general pension insurance and statutory health insurance.

Starting from next year, the contribution assessment ceiling in statutory health insurance will rise from the current 5,512.50 euros per month to 5,812.50 euros. In the general pension insurance, the contribution assessment ceiling will increase from 8,050 euros per month to 8,450 euros from January 1st, 2022. By 2026, these ceilings are planned to be further increased, with the compulsory insurance threshold in statutory health insurance set to be raised from the current 6,150 euros gross monthly income to 6,450 euros per month.

These increases will result in high-income individuals paying more social security contributions. The draft regulation for these changes was sent by the Federal Ministry of Labour for consultation to other departments, and the details have been made available to the German Press Agency.

Politicians from various parties have supported these changes. Janosch Dahmen, the health policy spokesman of the Greens, has advocated an increase in the contribution assessment ceiling "step by step to the level of statutory pension insurance" alongside structural reforms. Christos Pantazis, the SPD's health expert, suggested in an interview that high earners should pay more into statutory health insurance and advocated an increase in the contribution assessment ceiling by around 2,500 euros.

The impact of these changes on pensioners is not yet clear. No information has been provided about the effect on pensioners in statutory health insurance, or the impact on pensioners in general.

The draft regulation for these changes was previously reported by the portal "Politico". However, no information has been provided about the head-on crash in the Göppingen district and the number of severely injured individuals in the context of the increases in contribution assessment ceilings, or about the integration council or its fight for influence in relation to these changes.

The increases in contribution assessment ceilings are part of a broader effort to address the financial challenges faced by the insurers, and further details about these changes are expected to be announced in the coming months.