In 2025, social security contributions in Germany are projected to increase significantly, potentially resulting in employees paying up to €1,320 more per year. This rise is mainly due to expected increases in health and long-term care insurance contributions, as well as adjustments to the contribution assessment ceiling.
The average additional contribution for health insurance is planned to be raised by 0.8 percentage points, bringing it to 2.5 percent of contributory income. Alongside this, the contribution assessment ceiling will also be increased, leading to social security contributions reaching 42 percent of gross salary by 2025. For employees earning a gross monthly salary of €3,000, this means an additional €12 will be deducted from their paychecks.
High earners will be particularly affected by the adjustments to the contribution assessment ceiling, with the ceiling for health and long-term care insurance rising from €5,175 to €5,512.50 per month. This could result in an increase in monthly health insurance contributions from €422 to €471, and an annual increase of €588. Nursing care contributions are also expected to rise by €168.
The federal government is also planning to raise the contribution assessment ceiling for pensions from €7,550 to €8,050, affecting just under four percent of the highest earners. This adjustment could see maximum pension contributions rise from €702 to €749, equating to an additional €564 annually.
Verena Bentele, president of the VdK social association, has highlighted the structural inequalities in the current system, where average earners contribute 19.2 percent towards pension, health, and long-term care insurance, while higher-income individuals pay a lower share of 13.5 percent. This raises questions about the fairness of the system and the extent to which wealthier individuals are contributing to social welfare.
The anticipated increases in social security contributions will not only impact take-home pay but also raise concerns about the sustainability of Germany's social security systems. The burden of these increases falls disproportionately on high earners, which is likely to intensify the debate surrounding equitable contributions to social welfare in the future.