Overview

• The Federal Labour Ministry circulated a draft for interministerial coordination that would take effect on 1 January 2026 if approved.
• Ceilings would rise to €8,450 per month in the pension and unemployment insurance, to €5,812.50 in health and long‑term care, and the insurance‑obligation threshold for private health cover to €6,450.
• Higher earners and their employers would pay contributions on a larger share of income, with indicative effects of about €74 more per month in pension contributions split between both sides and roughly €24 less net per month for affected workers from the health change.
• The ministry says the values are set by statute based on 2024 wage growth of about 5.16%, while employer groups and the taxpayers’ association denounce extra burdens and CDU figures offer mixed responses.
• Analysts warn many could be hit twice if statutory insurers lift supplemental premiums, and the move sits alongside the Aktivrente plan that would allow retirees to earn up to €2,000 a month tax‑free from 2026.