"By 2025, increased social contributions are projected, with affluent individuals potentially paying an additional EUR 903 annually"
Minister of Labor Barbara Bas (SPD) has submitted a draft decree to increase the contribution assessment limits for social security. The proposed increases are part of a plan that requires departmental consultation before implementation.
According to Frank Hechtner, an economist from the University of Erlangen-Nuremberg, these increases could eat into the planned reliefs for 2026. The economist calculated these figures for the "Handelsblatt" (Tuesday edition).
The proposed increases are based on income developments and are adjusted annually. For statutory health and long-term care insurance, the limit will rise from €5,512.50 to €5,812.50. For pension insurance, the limit will increase from €8,050 to €8,450.
The proposed increases could result in an additional €903 per year for high earners. For jointly assessed married couples with two children, where one partner earns between €8,500 and €10,000 per month and the other earns nothing or only €1,000 per month, additional burdens of around €300 per year are expected. However, these figures are not calculated by Frank Hechtner, but rather an estimate based on current income levels.
Taking into account the tax changes, the additional burden for a single person without children earning €6,000 per month is reduced to €81 per year. The article does not specify whether the tax changes are part of the coalition's planned changes or provide specific details about the tax changes that could reduce the additional burden.
The search results do not provide specific information about which legislators intend to cite Frank Hechtner's calculations on the planned increase of contribution limits for social insurance regarding the additional amount for high-income earners. The article does not mention any further details about the departmental consultation process or its outcome.
The additional burden for a single person without children earning €6,000 per month will be an additional €394 in social contributions next year. This is a significant increase compared to the reduced burden for the same income group due to tax changes.
The "Handelsblatt" reported the statements made by Frank Hechtner on Tuesday. The economist states that the increase in contribution assessment limits is a concern, as it could potentially offset the planned reliefs for 2026. The proposed changes are subject to the outcome of the departmental consultation process, and it remains to be seen whether any adjustments will be made to account for the potential impact on taxpayers.
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