Germany Increases Social Security Contribution and Compulsory Insurance Ceilings Effective January 1, 2026

Quick Hits

• In 2026, Germany’s Social Security Calculation Parameters Regulation will come into force, raising the compulsory insurance threshold to EUR 77,400 annually.
• The contribution assessment ceiling for statutory health and long-term care insurance will increase to EUR 69,750 per year, reflecting positive income trends.
• The contribution assessment ceiling in the general statutory pension insurance scheme will rise to EUR 101,400 annually, continuing the uniformity between the new and old federal states.

1. Compulsory Insurance Limit in Statutory Health Insurance

The annual income ceiling for statutory health insurance, also known as the compulsory insurance limit, will rise to EUR 77,400 (2025: EUR 73,800) per year or EUR 6,450 (2025: EUR 6,150) per month. The compulsory insurance limit is decisive for whether employees can opt for private health insurance.

2. Contribution Assessment Ceiling in Statutory Health and Long-Term Care Insurance
The contribution assessment ceiling for statutory health and long-term care insurance will rise to EUR 69,750 (2025: EUR 66,150) per year or EUR 5,812.50 (2025: EUR 5,512.50) per month. This ceiling sets the maximum income level that is subject to insurance contributions. Income exceeding this limit is not subject to contributions.

3. Contribution Assessment Ceiling in Pension Insurance
The contribution assessment ceiling for the general statutory pension insurance will uniformly be raised to EUR 101,400 per year or EUR 8,450 per month for. This ceiling determines the maximum income considered for calculating pension insurance contributions. Income above this limit is also exempt from contributions.

Key Takeaways

The annual adjustment of social insurance calculation parameters in line with income trends is essential for the financing of social security systems. However, the increase in the contribution assessment ceilings will result in a greater financial burden for both employers and high-earning employees.

Ogletree Deakins’ Berlin and Munich offices will continue to monitor developments and will post updates on the Cross-Border and Employee Benefits and Executive Compensation blogs as additional information becomes available.

Dr. Ulrike Conradi is the managing partner in the Berlin office of Ogletree Deakins.

Pauline von Stechow is a law clerk in the Berlin office of Ogletree Deakins.