Overview

• The Labour Ministry’s draft raises the pension insurance assessment ceiling to €8,450 per month (€101,400 a year) and the health and care ceiling to €5,812.50 per month (€69,750 a year).
• The threshold to opt out of statutory health insurance would climb to €6,450 per month (€77,400 a year), extending contribution liability to a larger share of high salaries.
• Higher earners would pay up to about €1,800 more in social contributions in 2026, with corresponding higher pension entitlements for income within the new limits.
• Separately, the cabinet approved a Second Occupational Pensions Strengthening Act for rollout on 1 January 2026 to expand company pensions, particularly for smaller employers and lower earners.
• An expert paper backed by Economics Minister Katherina Reiche urges linking the retirement age to life expectancy and curbing early retirement, while a citizens’ panel calls for scrapping contribution caps and increasing taxes on large wealth and inheritances.