Overview

• Additional contributions for statutory health insurance have risen above 3 percent, with Securvita charging 3.9 percent and Knappschaft at 4.4 percent due to rising care costs, demographics and wages.
• The government has postponed major health insurance reforms until a 2027 expert report, declining to implement short-term measures despite mounting deficits.
• This week’s cabinet approval of a new pension law locks the replacement rate at 48 percent through 2031 and boosts credits for parents, with funding secured by federal tax subsidies.
• A draft law foresees increasing the pension contribution rate from 18.6 percent to 18.8 percent of gross wages in 2027 to shore up long-term financing.
• Economists including Veronika Grimm and DIW researchers urge structural overhauls such as benefit cuts, later retirement ages and a ‘Boomer-Soli’ levy on pension incomes above €1,300 to ease intergenerational burdens.