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      What are the new thresholds for Social Insurance Contributions?

      For 2026, the government updated the so-called key thresholds for social insurance. These updates include changes to the contribution assessment ceilings and the compulsory-insurance threshold.

      Key new thresholds (monthly/yearly):

      • Pension and unemployment insurance contribution ceiling: €8,450 / €101,400 annually.

      • Health & long-term-care insurance contribution ceiling: €5,812.50 / €69,750 annually.

      • Insurance-obligation threshold for statutory health insurance: €6,450 / €77,400 annually.

      • Reference value used for various benefit calculations: €3,955 / €47,460 annually

      These adjustments mean: People earning above previous ceilings may pay more (or reach the cap sooner), while benefit calculations tied to such thresholds will adapt accordingly.

       

      1. The Financial Impact:

      The increase in the Contribution Assessment Ceilings (BBG) means that a larger portion of a high earner’s gross salary is subject to mandatory social insurance contributions.

      • Pension and Unemployment Insurance (BBG: €101,400): This ceiling, applicable uniformly across Germany, has seen a substantial jump. Employees earning above the previous limit will now pay pension and unemployment contributions on a higher monthly income, resulting in increased overall deductions. Consequently, employer contributions also rise, increasing personnel costs.

      • Health and Long-Term Care Insurance (BBG: €69,750): Similarly, the maximum income subject to these contributions has increased. Since Health Insurance rates (basic rate plus fund-specific supplementary rate) often exceed 17%, this BBG hike translates directly into a higher maximum premium paid by employees and employers.

      In essence, individuals earning above the new ceilings will experience a rise in their monthly Social Security deductions, as the ceiling caps the salary portion on which contributions are calculated.

      2. Private Health Insurance:

      The Compulsory-Insurance Threshold (JAEG) is the key dividing line between the public and private health insurance systems.

      • New JAEG: €77,400 Annually: An employee must now earn a regular annual income exceeding €77,400 to be exempt from mandatory statutory health insurance (GKV). Only upon crossing this threshold can an employee choose to switch to private health insurance (PKV).

      Implication: The significant increase in the JAEG to €77,400 raises the bar for accessing private health insurance. Employees who may have qualified under the 2025 ceiling, but whose current salary falls between the 2025 and 2026 limits, will remain (or become) mandatorily insured in the public system.

      3. The Reference Value

      The Reference Value (€3,955 monthly / €47,460 annually) serves as a basis for calculating many other key figures in the social system, particularly in the East German states.

      Impact: This reference value is used to calculate contributions for self-employed individuals and those in voluntary insurance, as well as various benefit amounts (e.g., parental benefits). The adjustment ensures that these related figures keep pace with the general wage development across the country.