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Germany Moves to Raise 2026 Social Insurance Ceilings, Hitting High Earners

The move follows a statutory formula tied to 2024 wage growth.

Overview

  • The Labour Ministry has circulated a formal draft for inter‑ministerial review that is not yet adopted but sets out higher 2026 assessment ceilings.
  • The draft lifts the monthly ceiling for pension and unemployment insurance from €8,050 to €8,450 and for health and long‑term care from €5,512.50 to €5,812.50.
  • The statutory insurance‑obligation threshold for switching out of public health insurance would rise from €6,150 to €6,450 per month.
  • The ministry states there is no normative discretion in the adjustment, which reflects a 5.16% rise in gross wages in 2024.
  • FAZ calculations indicate affected high earners face about €1,784 more in annual contributions before any rate changes, drawing sharp criticism from taxpayer and employer groups as others warn of a possible double burden if health funds raise additional premiums.