Germany’s leading employers’ association, Gesamtmetall, is urging the federal government to prevent further increases in social security contributions, proposing potential across-the-board spending cuts to achieve this goal
Oliver Zander, Chief Executive of Gesamtmetall, stated that the governing coalition must ensure social security contributions do not rise further from January 1st, 2026 He warned that failure to do so could significantly erode business confidence in the newly formed government Zander indicated a willingness to consider a five percent reduction in all social welfare expenditure as a necessary measure
Current annual spending across statutory pension insurance, health insurance, long-term care insurance and unemployment insurance totals over 800 billion euros A five percent reduction would equate to savings exceeding 40 billion euros
Zander emphasized the need for greater efficiency and targeted spending within the social security system He acknowledged recent government action regarding energy costs and taxation, but stressed that cost savings in labor costs, specifically within social insurance, are now crucial He argues that the current system is overly expensive due to inefficiencies, calling for a more streamlined and effective approach to social welfare provision