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Germany Sets 2026 Social Insurance Thresholds as Pension Overhaul Debate Intensifies

A new pension commission will deliver reform options within six months following the government's decision to raise 2026 contribution ceilings.

Overview

  • From 1 January 2026, the contribution ceiling rises to €5,812.50 per month in statutory health and long-term care insurance and to €8,450 in pension insurance; the compulsory insurance threshold in health insurance moves to €77,400 annual salary.
  • For people with severe disabilities born in 1964, an unreduced pension is available from 65 in 2026 or from 62 with a 10.8% deduction, completing the phased age increase.
  • Private health insurance premiums are reported to climb by about 13% on average from 1 January 2026, a cost pressure that will hit many retirees with fixed incomes.
  • The coalition plans to establish the pension commission before Christmas with a six‑month mandate, as Finance Minister Lars Klingbeil’s adviser Jens Südekum proposes linking retirement eligibility to contributory years instead of a fixed age.
  • Draft plans for a reworked basic income would require employable recipients to take full‑time jobs, with childless beneficiaries expected to be the first focus for new obligations.