Overview
- The draft lifts the contribution ceilings to €8,450 for pension and unemployment insurance and €5,812.50 for health and long-term care, pushing the annual pension cap to €101,400.
- If approved by the Bundesrat, the new thresholds would apply from January 1, 2026.
- Those earning above the previous limits would pay more, while most insured workers remain unaffected; higher pension contributions increase future entitlements, unlike higher health contributions.
- Example calculations: at €5,800 gross, health rises by €25.16 and care by €6.90 per month; at €8,450 gross, pension rises by €37.20 and unemployment by €5.20.
- Related changes include a higher Versicherungspflichtgrenze of €6,450, a basic tax allowance rising to €12,348, and variable insurer surcharges that could reduce take-home pay, with one taxpayer analysis suggesting losses of over €500 a year for some households.