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The calculation parameters for social insurance are updated annually and adjusted to income trends. Effective January 1, 2026, the Social Security Calculation Parameters Regulation 2026, as approved by the Federal Cabinet on October 8, 2025, will come into force. Due to the positive income development over the past year, the contribution assessment ceilings will increase more significantly than in previous years.
Quick Hits
- In 2026, Germany's Social Security Calculation Parameters Regulation will come into force, raising the compulsory insurance threshold to €77,400 annually.
- The contribution assessment ceiling for statutory health and long-term care insurance will increase to €69,750 per year, reflecting positive income trends.
- The contribution assessment ceiling in the general statutory pension insurance scheme will rise to €101,400 annually, continuing the uniformity between the new and old federal states.
1. Compulsory Insurance Limit in Statutory Health Insurance
The annual income ceiling for statutory health insurance, also known as the compulsory insurance limit, will rise to €77,400 (2025: €73,800) per year or €6,450 (2025: €6,150) per month. The compulsory insurance limit is decisive for whether employees can opt for private health insurance.
2. Contribution Assessment Ceiling in Statutory Health and Long-Term Care Insurance
The contribution assessment ceiling for statutory health and long-term care insurance will rise to €69,750 (2025: €66,150) per year or €5,812.50 (2025: €5,512.50) per month. This ceiling sets the maximum income level that is subject to insurance contributions. Income exceeding this limit is not subject to contributions.
3. Contribution Assessment Ceiling in Pension Insurance
The contribution assessment ceiling for the general statutory pension insurance will uniformly be raised to €101,400 per year or €8,450 per month. This ceiling determines the maximum income considered for calculating pension insurance contributions. Income above this limit is also exempt from contributions.
Key Takeaways
The annual adjustment of social insurance calculation parameters in line with income trends is essential for the financing of social security systems. However, the increase in the contribution assessment ceilings will result in a greater financial burden for both employers and high-earning employees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
