The contribution assessment limits in social insurance are likely to rise significantly next year. This is according to a draft regulation from the Federal Ministry of Labor, which was first reported on Saturday by the “Bild” newspaper. The level of the contribution assessment limits is determined by wage and salary developments. Salary components above the limits remain exempt from contributions.
Increase of 6.5 percent in health and nursing care insurance
In statutory health and long-term care insurance, the contribution assessment limit will rise to 5,512 euros of monthly gross salary in 2025. It is currently 5,175 euros.
Increase of 6.6 and 8 percent respectively in pension contributions
The contribution limit for pension and unemployment insurance will rise from the current 7,550 euros in western Germany and 7,450 euros in eastern Germany to a uniform 8,050 euros. Currently, pension contributions must be paid on monthly gross salaries of up to 7,550 euros in western Germany. In eastern Germany, the limit is 7,450 euros.
Wages increased by an average of 6.44 percent
The reason for the relatively high increase in the limits is the “very good wage development of 6.44 percent across Germany last year,” Bild quoted a spokesman for the Ministry of Labor as saying. The increase will ensure “that higher earners also contribute relatively consistently to the financing of social insurance in line with the average wage development.”
The increase in the contribution assessment ceiling primarily affects higher-income earners and their employers. The effect is reinforced by the fact that the contribution rates for statutory health insurance and long-term care insurance are also likely to rise in the coming year.
