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Raising the contribution assessment ceilings for social security

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Planned increase in contribution assessment limits

The contribution assessment ceiling for pension, health, and long-term care insurance could be significantly raised in 2025. The Federal Ministry of Labor bases this initiative on wage developments. Social security contributions for high earners are scheduled to increase next year. A draft proposal from the ministry proposes a substantial increase in the contribution assessment ceilings. A ministry spokesperson confirmed this in a statement to the Bild newspaper.

According to the report, contributions to the statutory pension insurance scheme will in future be due on monthly incomes up to €8,050. The current threshold is significantly lower and varies between the former East and West Germany: in West Germany, the limit is €7,550, while in East Germany it is €7,450. If someone earns more than this, contributions are only payable up to this limit; no contributions are due on income exceeding this amount.

Current status of the vote

The draft is currently under review. According to the report, the contribution assessment ceiling for statutory health and long-term care insurance is to be raised to €5,512.50. Currently, higher earners must pay contributions on incomes up to €5,175 per month. A spokesperson for the ministry explained that the draft is now being discussed within the government's inter-ministerial consultation process.

The adjustments to contribution rates are based on last year's income trends. The spokesperson attributed the size of the adjustments to the "very strong wage growth of 6.44 percent across Germany last year." This will result in a significant increase in the contribution assessment ceilings in 2025 to ensure that higher earners also contribute to financing social security in line with average wage growth.