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The traffic light plans to significantly increase the contribution assessment limit starting next year. This means that high earners have to pay more for social services such as pensions, health insurance and care.
Berlin – From January 1, 2025, social security contributions will increase significantly for high earners. This is what a draft from the Ministry of Labor and Social Affairs provides for. The law is scheduled to be passed in the cabinet on Wednesday (October 16). The Ministry of Finance had previously raised objections – but these have now reportedly been resolved.
Less net of gross for top earners: contribution assessment limit increases
In the dispute with the Ministry of Finance over higher social security contributions for high earners, Federal Labor Minister Hubertus Heil prevailed. The SPD politician’s draft to increase the calculation figures in social security is to be approved unchanged by the cabinet with a delay of a few weeks Reuters learned from government circles on Monday. “The Federal Ministry of Finance and the Federal Ministry of Health have agreed,” it says Reuters present cover letter from the minister on the cabinet submission. “The other departments did not raise any objections.”
Heil and Lindner jointly presenting their pension compromise. The two ministers have now agreed on higher social security contributions. © Michael Kappeler/dpa
With the regulation, the contribution assessment limits in pension and health insurance are adjusted annually to the wage development. However, this means an unusually large increase for 2025, as the Ministry of Labor is based on a wage growth rate of around 6.4 percent for 2023. Social insurance contributions are deducted from wages up to the contribution assessment limits. No social security contributions are due for the portion of remuneration above this. As a result of the increase, high earners have to pay more because a larger part of their wages falls under social security contributions.
Heil pushes through against Lindner: Social security contributions will rise in 2025
The Ministry of Finance had expressed reservations such as this Handelsblatt reported at the end of September. In the department of Finance Minister Christian Lindner (FDP) there was criticism that the higher social security contributions for high earners contradicted the tax relief in the growth initiative. In this way, employees should be relieved of the burden of cold progression – the loss of real wages due to inflation. This relief is expected to be around 200 million euros higher for 2025 than previously planned, as was announced on Monday.
In general pension insurance, the contribution assessment limit increases to 8,050 euros per month (2024: 7,550 euros). The compulsory insurance limit in statutory health insurance increases to 6,150 euros per month (5,775 euros). The contribution assessment limit for health insurance is set at 5,512.50 euros per month (5,175 euros).W
The table shows: This is how much more top earners will have to pay from 2025
Anyone who receives exactly the highest salary of the contribution assessment limit (or more) will pay the following contributions in the future:
The maximum that a person has to pay into social security funds increases by 187.40 euros per month. (with material from Reuters)
