Increased taxes for well-remunerated employees, effective from 2026
In the coming years, many employees in Germany may face an increase in their additional contributions to the statutory health insurance (SHI). The exact amount of this increase will vary depending on the financial situation of each health insurance fund.
The current compulsory insurance threshold in the SHI is set at 6,150 euros of gross monthly income. However, this is set to rise to 6,450 euros in 2026. This means that employees earning above this threshold will be required to pay more towards their health insurance.
The total contribution for health insurance, shared between employees and employers, is 14.6% of gross wages. In addition to this, the average additional contributions for health insurance rose to 2.9% at the beginning of 2023. With the planned increases, many employees may find themselves being hit twice instead of being relieved.
The federal government, according to Dennis Radtke, has little room for maneuver in raising contribution assessment ceilings. The contribution assessment ceiling in the SHI is planned to increase from 5,512.50 euros per month to 5,812.50 euros as of 2026. For the statutory pension insurance, the ceiling is planned to increase from 8,050 euros per month to 8,450 euros as of January 1, 2026.
Janosch Dahmen, the health policy spokesman for the Greens, has called for an increase "in stages to the level of the statutory pension insurance" alongside structural reforms. Reiner Holznagel, president of the Federal Association of Taxpayers, advocates for cuts to social benefits instead of just raising limits.
In June, SPD health expert Christos Pantazis suggested that high earners should pay more into the statutory health insurance to stabilize its financial situation, advocating an increase in the contribution assessment ceiling by around 2,500 euros. Each health insurance fund determines its own concrete additional contribution based on its financial situation for its insured.
The performance expenditures of the approximately 90 health insurance funds increased by 7.95% to 166.1 billion euros in the first half-year of 2023. Many employees are frustrated because they feel they are barely getting anywhere despite hard work. Income above the contribution assessment ceiling in the pension insurance is not taken into account for the calculation of pension insurance contributions.
The annual income threshold for private insurance eligibility (insurance obligation limit) is expected to rise to 77,400 euros. It is important for employees to stay informed about these changes and to plan accordingly to manage their financial situation.
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