Proposed adjustments to social security contribution calculation thresholds are set to impact German earners, with some high-income individuals potentially facing annual increases of up to €903, according to calculations by economist Frank Hechtner of the University of Erlangen-Nürnberg.
The adjustments, spearheaded by Labor Minister Bärbel Bas (SPD), involve raising the contribution calculation thresholds for social security contributions. The proposed changes, currently undergoing inter-departmental review, would increase the threshold for pension insurance from €8,050 to €8,450 and for statutory health and long-term care insurance from €5,512.50 to €5,812.50, effective next year. These figures are annually adjusted to reflect income development.
While a single individual earning €6,000 per month would see an additional €394 contributed to social security next year, that net increase is significantly reduced to €81 when factoring in planned tax law modifications anticipated by the governing coalition.
The most substantial annual increases are projected for married couples filing jointly with two children, particularly when one partner earns between €8,500 and €10,000 per month and the other earns little or nothing, or around €1,000 per month. These couples could face increases of around €300 annually.
Hechtner has voiced concern that these adjustments are beginning to erode planned tax relief set to take effect in 2026, highlighting a potential impact on overall household finances.