Planned increase in social contributions for high-earning employees starting from 2026
In a bid to address the financial strain faced by insurers, SPD's health expert, Christos Pantazis, proposed an increase in the contribution assessment ceiling for statutory pension insurance in June. This proposed increase is roughly equivalent to a 2,500 euro increase.
Similarly, Janosch Dahmen, the health policy spokesman of the Greens, has called for a step-by-step increase in the contribution assessment ceiling for statutory health insurance. Dahmen's call is in conjunction with structural reforms.
The contribution assessment ceiling in both systems determines the maximum amount of gross income up to which contributions are levied. For the statutory health insurance, the planned increase will take effect in 2026, with an annual income ceiling of €77,400. This change will affect the calculation basis for health insurance contributions.
In contrast, the contribution assessment ceiling for pension insurance does not specify a value in the provided text. However, it is important to note that contributions to both the old-age provision systems are paid by both employees and employers.
It is also worth mentioning that income above the contribution assessment ceiling is not taken into account for the calculation of pension insurance contributions. The values of the calculation factors of the social security are determined by observing the development of wages and salaries.
These proposed increases aim to provide relief to the insurers and ensure the sustainability of the systems. However, the specific implications and the response from various stakeholders are yet to be seen.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan