Rise in social contributions for high-earning employees, effective from 2026
In Germany, the debate surrounding health insurance contributions has taken centre stage in recent discussions. As we approach the end of the year, an expert committee will determine an orientation value for the average additional contribution in the following year.
Currently, employers and employees share the total contribution to health insurance, which amounts to a uniform rate of 14.6% of gross wages. However, the healthcare costs of the approximately 90 health insurers increased by 7.95% to 166.1 billion euros in the first half of the year. This rise has led to an increase in additional contributions, with the average additional contributions rising to 2.9% at the beginning of this year.
Dennis Radtke (CDU) has stated that the federal government has little room for maneuver regarding wage increases and that many employees are being hit twice due to an increase in additional contributions in the SHI. Reiner Holznagel, president of the German Taxpayers' Association, suggests cuts in social benefits instead of just raising contribution limits.
On the other hand, SPD's health expert Christos Pantazis advocates for an increase in the contribution assessment ceiling by around 2,500 euros to stabilize the tense financial situation of the insurers. The Green Party's health policy spokesman, Janosch Dahmen, calls for an increase "step by step to the level of the statutory pension insurance" alongside structural reforms.
The issue is not without concern for the general public. Many people are simply fed up because they're barely getting anywhere despite hard work, according to a Member of the European Parliament. The concern is that further increases in contributions could exacerbate this feeling of frustration.
Each health insurance fund sets the concrete additional contribution based on its financial situation for its insured. This means that the impact of the increases can vary greatly depending on the specific fund and the region.
As the debate continues, it is clear that finding a solution that balances the financial needs of the insurers with the ability of individuals and businesses to afford the increases will be a key challenge. The expert committee's decision in the autumn is likely to provide some much-needed clarity on this issue.
