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German Cabinet Poised to Raise Social Contribution Ceilings for High Earners From January

The change would be enacted by ordinance without Bundestag approval.

Overview

  • The pension insurance assessment ceiling is expected to rise to €8,450 per month from €8,050, affecting about 2.1 million employees.
  • The health and long‑term care insurance ceiling is set to increase to €5,812.50 per month from €5,512.50, leading to higher payments for roughly 5.5 million employees.
  • Ministers are expected to adopt the measure after prior inter‑ministerial coordination, with no further cabinet debate.
  • The cabinet agenda also includes an update to the Federal Police Act to establish a legal basis for drone‑defense measures by the Bundespolizei.
  • A revised hospital reform from Health Minister Nina Warken is due for decision, delaying full implementation to 2030, easing rules for smaller clinics, and shifting statutory insurers’ share of a transformation fund to the federal government.