Overview

• Draft rules would raise the pension contribution ceiling to €8,450 per month (€101,400 per year) in 2026 from €8,050, adding almost €1,800 a year in contributions for very high earners, with the same limits applying to unemployment insurance.
• Assessment ceilings for statutory health and long-term care insurance would climb to €5,812.50 per month (€69,750 per year), and the private insurance entry threshold would rise to €6,450 per month (€77,400 per year).
• The ministry says the adjustments follow a fixed formula tied to 2024 gross wage growth of 5.16 percent and that it has no discretion over the values.
• CDU parliamentarian Steffen Bilger called the review of ceilings understandable but said the burden underscores the need for system reform, while economist Veronika Grimm warned contributions will keep rising toward roughly 45 percent without changes.
• A citizen panel presented recommendations including a one-off 10 percent levy on large liquid wealth, tougher inheritance taxation, abolishing private health insurance and scrapping the pension cap, as the government signals an 'autumn of reforms' to address a €30 billion 2027 budget gap.