German Social Contributions Projected to Surge to Nearly 50% by 2035

Rising healthcare and social insurance costs prompt urgent calls for reform to prevent further burdens on workers and employers.

• Social contributions in Germany have reached 42.3% in 2025, with projections suggesting a rise to 49.7% by 2035, according to a study by the Iges-Institut.
• Healthcare costs are a major driver, with the average contribution to statutory health insurance increasing from 16.3% to 17.5% at the start of 2025 and potentially reaching 20% by 2035.
• DAK-Gesundheit proposes a three-step plan to curb rising costs, including increased federal subsidies, better patient care management, and shifting hospital reform funding to the federal budget.
• Critics argue that the current system unfairly burdens workers and employers, with calls for structural reforms in healthcare and social insurance financing to ensure sustainability.
• Without intervention, experts warn that escalating costs could disproportionately impact younger generations and make employment less attractive due to higher deductions from wages.

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