Discussions are ongoing regarding proposed adjustments to social security contribution thresholds across Germany. Federal Labour Minister Bärbel Bas (SPD) is reportedly planning to raise the contribution assessment limit in the statutory pension insurance scheme to €8,450 in 2026, up from the current €8,050. A corresponding increase for statutory health and nursing insurance is projected, with the assessment limit potentially rising from €5,512.50 to €5,812.50 next year.
Sahra Wagenknecht, leader of the BSW party, has criticized these plans as inadequate, arguing that they represent only routine annual adjustments and fail to effectively curb rising social security contributions. She questioned the system where lower and average earners contribute social security taxes on their entire income, while top earners pay only on a portion, often a smaller bracket. Wagenknecht advocated for a citizen’s insurance system where everyone contributes proportionally to their income and proposed a symbolic step for the ruling coalition: mandatory contributions from all members of the federal government and parliament.
The Union faction has acknowledged the need to adjust contribution assessment limits to reflect wage developments, but cautioned against potential double burdens for employees. Dennis Radtke (CDU), head of the Christian Democratic Workers’ Association, warned that the planned increase in the supplementary contributions for statutory health insurance could leave many employees facing a “double hit” instead of providing relief. He urged the coalition government to prioritize economic growth and taxpayer relief alongside foreign policy concerns.
The German Taxpayers’ Association has also voiced concerns, labeling the plans as ineffective. Reiner Holznagel, the organization’s president, stated that the proposed changes would disproportionately affect skilled workers and the self-employed, leading to an immediate rise in their health insurance contributions as the limit approaches roughly €70,000 in gross annual income.
