Germany is facing a significant increase in social insurance contributions, the largest in over two decades, as the government warns of a potential financial crisis in the statutory care insurance system.

According to reports, the care insurance could run out of funds by February unless immediate action is taken.

The current proposal to raise the contribution rate by 0.2 percentage points is deemed insufficient, with government sources suggesting a need for an increase of 0.25 to 0.3 percentage points.

This adjustment is necessary to ensure financial stability until at least spring 2025, following a prolonged government formation period after the 2025 federal elections.

Currently, the care insurance contribution rate stands at 3.4%, with childless individuals paying 4%.

The proposed increase would add to the expected 0.7 percentage point rise in health insurance contributions, leading to a substantial rise in social contributions by early 2025.