Implementing Enhanced Social Contributions for High-Earners Starting From 2026

In a recent development, SPD health expert Christos Pantazis and Greens' health policy spokesman Janosch Dahmen have put forth proposals aimed at addressing the financial strain of insurance companies in Germany.

The proposals suggest a gradual approach towards bringing the contribution assessment ceiling of the statutory pension insurance closer to its current level. Christos Pantazis has suggested an increase in the contribution assessment ceiling by around 2,500 euros. This move is intended to provide much-needed stability to the financial situation of the insurance companies.

In the realm of statutory pension insurance, Dahmen has suggested moving "step by step to the level of statutory pension insurance". The proposals also suggest structural reforms to the system. It's worth noting that income above the contribution assessment ceiling is not considered for the calculation of pension insurance contributions.

From 2023, the contribution rates for social insurance types in Germany remain largely stable. The statutory pension insurance rate remains at 18.6% through 2027. The unemployment insurance rate is 2.6%, and the statutory health insurance contribution rate is 14.6% plus an average supplementary contribution (around 1.25%). For long-term care insurance, the contribution rates were increased by 0.2 percentage points starting in 2025, with differentiated rates depending on the number of children, ranging from 2.6% to 4.2% for members without children.

In June, Pantazis proposed that high earners should pay more into the statutory health insurance. This proposal aligns with the suggestions for an increase in contributions from high earners to the statutory health insurance, as outlined in the joint proposals by Pantazis and Dahmen.

The contribution assessment ceiling in the pension insurance is the maximum amount of gross income up to which contributions are levied for the statutory system of old-age provision. The proposals aim to bring this ceiling closer to the current level of the statutory pension insurance, thereby ensuring a more equitable distribution of the financial burden across all income brackets.

These proposals are part of a broader effort to ensure the long-term sustainability of the social insurance systems in Germany, providing a much-needed boost to the financial health of the insurance companies.