Government proposes higher social insurance payments for high earners

(de-news.net) – The German federal government is preparing to implement a significant adjustment to the country’s social security framework – specifically targeting high-income earners -, according to recent media coverage. Federal Labor Minister Bärbel Bas (SPD) is expected to introduce a regulation to the Cabinet that would increase the contribution assessment ceilings for statutory pension, health, and long-term care insurance.

Beginning in January 2026, approximately 2.1 million employees will be required to make higher monthly contributions to the statutory pension scheme. In addition, around 5.5 million workers will be affected by the corresponding changes to statutory health and long-term care insurance contributions. These adjustments are designed to ensure that individuals with higher earnings contribute proportionately more to the social insurance system so to see the financial foundation of essential public services bolstered while promoting fairness and fiscal responsibility within the system.

The contribution assessment ceiling defines the upper limit of gross monthly income on which mandatory social insurance contributions are calculated. Under the proposed regulation, the ceiling for pension contributions will rise from the current 8,050 to 8,450 euros per month. Similarly, the ceiling for health and long-term care insurance contributions will increase from approximately 5,513 to 5,813 euros per month.

The initiative forms part of a comprehensive effort to safeguard the long-term viability of Germany’s social security systems amid demographic shifts, including an aging population and increasing life expectancy, as well as rising expenditure demands. The main desired result is to align contribution thresholds with evolving income levels and economic conditions.

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