Compulsory increase in social contributions for well-paid employees, effective from 2026
In a move that may affect millions of Germans, health insurance funds have announced plans to increase contributions for their insured members next year. The specific amounts will depend on each fund's financial situation, following an orientation value determined by a working group each autumn.
The increase in healthcare expenditure for approximately 90 health insurance funds was significant in the first half of the year, totaling 166.1 billion euros, representing a 7.95% increase.
Politicians have weighed in on the issue, with Janosch Dahmen, health policy spokesman of the Greens, advocating for an increase in contributions, stepping towards the level of the statutory pension insurance. On the other hand, Reiner Holznagel, president of the Federal Association of Taxpayers, suggested that instead of raising limits, cuts in social benefits are necessary to "finally relieve employees."
Employers and employees jointly contribute to the total health insurance premium, which includes a uniform rate of 14.6% of gross wages. However, Dennis Radtke (CDU) noted that the federal government has limited room for maneuver in increasing limits due to the development of wages.
At the beginning of the year, the average additional contributions rose to 2.9%. Unfortunately, there are no specific details about the planned additional contributions for individual insurance types in 2026 available at this time.
Debate continues over who should bear the brunt of these increased costs. Christos Pantazis, SPD health expert, suggested that high earners should pay more into the statutory health insurance, with an increase in the contribution assessment ceiling by around 2,500 euros. In contrast, Radtke mentioned a potential dilemma: an increase in the assessment ceiling could lead to an increase in additional contributions in the SHI, potentially causing employees to be hit twice instead of being relieved.
As the details of the planned contributions continue to unfold, it remains to be seen how these changes will impact the financial well-being of both individuals and businesses in Germany.
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