Overview
- A government regulation was approved by the cabinet on Wednesday, October 7, clearing the formal step to raise contribution assessment ceilings for 2027 while the measure still needs Bundestag and Bundesrat sign-off.
- The new limits set the statutory ceiling for health insurance at €6,375 per month (€76,500 per year) and for pension insurance at €8,850 per month (€106,200 per year), with the insurance‑opt‑out threshold rising to €84,150 annually.
- Employees who already earn above the old ceilings face roughly €102 more in monthly social contributions (about €1,220 a year in a typical example) and employers see the combined cost per high‑income job rise by about €200 a month.
- As part of the broader reform package planned for 2028, the government proposes ending some cases of free spousal coverage by adding surcharges of about 2.5% for health insurance and 0.52% for long‑term care with exemptions for carers, disabled partners, and parents of young children; early retirees and couples with age gaps are especially affected.
- The changes have prompted pushback from employer and social groups and could prompt some people to consider private health insurance, although analysts warn of long‑term cost risks in the PKV and note most private insurers are mutuals rather than public companies that investors can easily back.