Overview
- The federal cabinet approved a draft to raise 2026 contribution assessment ceilings, lifting the pension and unemployment cap to €8,450 per month and the health and long‑term care cap to €5,812.50.
- The draft also increases the statutory health insurance obligation threshold to €6,450 per month, with Bundesrat approval still required before the changes take effect.
- Higher ceilings primarily hit top earners by pulling more pay into contributions, and the health cap increase does not bring additional benefits according to the ministry’s explanation.
- Deutsche Rentenversicherung chief Alexander Gunkel forecasts the pension contribution rate rising by 1.2 percentage points to 19.8% in 2028, then to 20.0% in 2029 and 21.2% by 2037.
- The projected 2028 jump is tied to a planned increase in the sustainability reserve minimum from 0.2 to 0.3 months, and a 1.2‑point rise would cut employee take‑home pay by about 0.6 points, or roughly €216 a year at €3,000 gross and €504 at €7,000.