Social Insurance In Germany
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      How high will the long-term care insurance contribution be from July 2023?

      The German Health Ministry in Germany changed the monthly care insurance contributions. What does that mean for employers?

      In order to ensure the financial stability of long-term care insurance and to enable planned benefit adjustments, the contribution rate will be increased on July 1, 2023. The Federal Council approved the law on June 16, 2023.

      The general contribution rate is to rise to 3.4 percent (previously: 3.05 %) and the supplement for childless persons to 0.6 percent (previously: 0.35 %).

      There are to be deductions for families with two or more children. You can find the planned values in our table.

      The Planned Values (PV) contribution rates as of 1 July 2023

       

      Personal situation General contribution rate PV from 01.07.2023 Premium surcharge from 01.07.2023 Employer Contribution Employee Contribution
      Insured without children
      3,4 %
      0,6 %
      1,7 %
      2,3 % (= 1,7 % + 0,6 %)
      Insured with a child
      3,4 %      		 not applicable
      1,7 %
      1,7 %
      Insured with 2 children under 25
      3,4 % with a discount of 0,25 %      		 not applicable
      1,7 %
      1,45 % (= 1,7 % - 0,25 %)
      Insured with 3 children under 25
      3,4 % with a discount of 0,5 %      		 not applicable
      1,7 %
      1,2 % (= 1,7 % - 0,5 %)
      Insured with 4 children under 25
      3,4 % with a discount of 0,75 %      		 not applicable
      1,7 %
      0,95 % (= 1,7 % - 0,75 %)
      Insured with 5 children under 25
      3,4 % with a discount of 1 %      		 not applicable
      1,7 %
      0,7 % (= 1,7 % - 1 %)
      Insured persons whose children are all at least 25 years old
      3,4 %      		 not applicable
      1,7 %
      1,7 %

      Important to know

      • The discount for families with children only affects the employee contribution, not the employer contribution. This is intended to provide special relief for insured persons with (many) children.
      • Only children under the age of 25 are included in the deduction.

      What evidence is required?

      Proof of parental status

      The procedure for collecting and proving parental status has not yet been determined. This means that the deductions will probably not be calculated immediately from 1 July 2023. However, we will refund or offset any excess contributions paid from 1 July 2023. We will provide the information as soon as the procedure has been determined.

      Long-term care insurance contribution 2023

      In concrete terms, the care contribution for larger families will be reduced more significantly for the duration of the upbringing phase up to the 25th birthday of the child in question - gradually for each child. If you have two children or more, you have to pay less than today, based on the employee share of currently 1.525 percent. Starting from July 1st, 2023, the employee share will be 1.45 percent for two children, 1.2 percent for three children, 0.95 percent for four children, and 0.7 percent for five or more children. If a child is older than 25 years, "his" deduction does not apply. If all the children are out of the child-rearing period, the one-child contribution applies permanently, even if you are retired.

      The implementation of the judgment

      The implementation of the judgment of the Federal Constitutional Court with this law should therefore lead to a constitutional consideration of contributions in the statutory long-term care insurance. However, it also means that additional employee data must be queried by the employer and stored in systems.

      What do I have to do now?

      Please share the following documents with your payroll provider Consultinghouse

      • Birth certificates of your children

      (e.g. birth certificate, extract from the birth register of the registry office, adoption certificate), whereas on - whose evidence could possibly be omitted. Regardless of the form, the proof should be available within three months after the birth of the child.

      Questions & Answers

       

      Questions

      Answers

      How will the care contribution be calculated from July 1, 2023?      		 From July 2023, the amount of the long-term care insurance contribution will depend on how many children the insured person has and whether the children are under the age of 25. The planned values can be found in our table.
      What contribution rate do I have to apply if my employees have one or more children? The general PV contribution rate should apply to employees with one child. From two children, there should be deductions. The deduction only applies to the employee share - the employer share should always be 1.7 percent. In our table, you will find the planned new values.

      Up to what age are children counted towards the new long-term care insurance contribution?      		 Larger families should pay less in the child-rearing phase. It is therefore planned that the deductions for the PV contribution will only apply as long as the child is under 25 years old. If all children are 25 years of age or older, parents' contributions shall be calculated at the general PV contribution rate of 3.4 percent.

      Deductions for children in the PV contribution: what applies to which date of birth?      		 The planned law provides for certain regulations and deadlines - depending on whether the child was born before the law came into force or after.

      What contribution rate applies if all children are at least 25 years old?      		 If all children are 25 years old or older, the parents' contributions are to be calculated using the general long-term care insurance contribution rate of 3.4 percent.