Proposed Increase in Social Contributions for High-Income Earners Starting in 2026
Insurance Reform Proposals Aim to Stabilise Financial Situation
Two prominent figures, Christos Pantazis and Janosch Dahmen, have put forth reform suggestions aimed at strengthening the financial stability of insurance companies.
Christos Pantazis, an SPD health expert, has proposed an increase in the contribution assessment ceiling for both statutory health and long-term care insurance, as well as pension and unemployment insurance. This increase is approximately 2,500 euros, bringing the new monthly ceilings to €4,987.50 and €7,100 respectively, as of January 1, 2023. It is worth noting that income above the contribution assessment ceiling is not taken into account for pension insurance contributions.
The rationale behind this proposal is to help stabilise the financial situation of insurance companies. Pantazis believes that high earners should contribute more to the statutory health insurance.
Janosch Dahmen, the health policy spokesman of the Greens, also advocates for structural reforms. He suggests an increase in contributions "step by step to the level of statutory pension insurance".
The calculation factors of social security, including these insurance contributions, are determined by considering the development of wages and salaries. This means that as income levels rise, so too might the contribution rates.
These proposals are part of a broader conversation about the financial health of insurance companies and the role of high earners in supporting the system. As discussions continue, it is hoped that a sustainable solution will be found to ensure the long-term viability of these essential services.
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