German Cabinet Approves Increased Social Contributions for High Earners

The proposed hikes in healthcare, pension, and care insurance contributions aim to stabilize social security systems amid financial pressures.

Starting in 2025, high-income earners in Germany will see increased contributions to health, care, and pension insurance following cabinet approval.
The plan, spearheaded by Labor Minister Hubertus Heil, is part of a broader effort to address financial challenges facing the country's social security systems.
The proposed care insurance contribution will rise by 0.15 percentage points to 3.55%, with further reforms under discussion to ensure long-term financial stability.
Critics, including the DAK health insurance chief, argue that the planned hikes are insufficient and call for the government to repay pandemic-related costs to the care insurance fund.
Adjustments to the contribution assessment limits for health and pension insurance are also planned, reflecting a significant wage growth rate of 6.4% in 2023.