The German government is planning to implement significant changes to social security contributions starting in 2025.
The cabinet has approved a plan that will increase contribution rates by 0.1 percentage points for pension, health, and long-term care insurance.
Currently, average earners contribute 19.2 percent, while higher earners pay a reduced rate of 13.5 percent. This disparity has raised concerns among social advocates who argue that wealthier individuals are not contributing their fair share.
The proposed changes aim to address this imbalance and generate additional revenue for the pension fund.
The adjustments will also impact pensioners, particularly those receiving reduced earning capacity pensions.
The income limits for additional earnings will be raised, benefiting approximately 1.8 million pensioners.
The changes are part of a broader strategy to address structural inequalities within the system and ensure that all citizens contribute equitably.
The proposed changes must pass through the legislative process, with discussions expected to take place on November 22.
The increase in social security contributions reflects a significant shift in the government's approach to funding social programs and will particularly affect high earners.
The financial implications for high earners are significant, with monthly contributions to social security funds set to increase.
The changes are supported by social associations, who argue that they are necessary to maintain the integrity of the pension fund and ensure that high earners contribute appropriately.
The outcome of the legislative process will shape the future of social security in Germany and the ongoing debate over equity and responsibility within the social safety net.