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Germany’s Higher Earners Set to Take Home Less in 2026 as Health Insurance Cap Rises

A taxpayer group’s calculations point to higher statutory health contributions from a raised assessment ceiling as the driver.

Overview

  • From January 2026, a higher contribution assessment ceiling will increase statutory health insurance deductions for pay above roughly €5,500 gross per month, according to the Bund der Steuerzahler.
  • Illustrative examples suggest net losses of up to €41.80 per month (about €502 annually) for very high earners, with a two‑child household on €6,000 gross losing about €16.80 monthly.
  • Lower‑ and middle‑income workers are projected to see small gains from increases to the basic tax allowance and child benefit, with cited cases showing roughly €2.30 to €5 more per month.
  • The federal cabinet has adopted the 2026 social insurance reference values, including higher contribution ceilings and a new €603 monthly Minijob limit starting in January.
  • Bund der Steuerzahler president Reiner Holznagel faults the government for delaying income‑tax reform and calls for compensating measures by 2026.