The Association of Founders and Self-Employed in Germany (VGSD) has issued a warning regarding proposed plans by the Federal Health Minister, Nina Warken (CDU), to eliminate the free contribution coverage for spouses. The organization foresees a wave of business closures and a widespread shift back toward salaried employment. Andreas Lutz, the VGSD Chairman, noted in the Thursday edition of the “Neue Osnabrücker Zeitung” that the number of part-time freelancers and corresponding startups is expected to decline significantly.
The root cause of this concern is the federal government’s intention to overhaul health insurance funds by largely removing the contribution-free family insurance benefit for partners, a policy update that would particularly affect self-employed individuals earning less than €565 per month. Lutz fears that many affected people will be forced to abandon their professional independence simply to manage the rising costs. He explained that these individuals will face a difficult choice: either giving up their entrepreneurial dreams and entering a dependent, middle-income job, or significantly scaling up their freelance work, which could clash with their family responsibilities.
The VGSD board provided a financial comparison to illustrate the struggle. They calculated that self-employed persons pay a minimum contribution of about €240 solely for health and nursing care. For an income of €650, after subtracting health insurance costs, they would retain €410; after subtracting income-dependent pension insurance, they would be left with a net income of €290. In contrast, a salaried employee in a comparable middle-income job would reportedly have around €633 available after all social contributions were deducted.
To prevent this social imbalance, the association is demanding a fundamental reformation of the contribution logic. Lutz concluded by insisting that if the family insurance benefit is removed, it must be replaced by a fair, income-dependent contribution assessment system.
