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Germany Today

German news in English

Friday, September 20, 2024

Germany's Social Contributions Surge in 2025

Published: 2024-09-17

In 2025, high earners in Germany will face a significant increase in social security contributions due to a substantial rise in the contribution assessment ceiling.

This change, driven by a 6.44% increase in wages over the past year, will see the ceiling for pension contributions rise from €90,600 to €96,600 annually.

Consequently, top earners will pay up to €8983.80 in pension contributions, an increase of €558 from the previous year.

Similarly, the ceiling for health and care insurance contributions will increase, affecting incomes up to €5512.50 monthly.

This adjustment aims to ensure that higher earners contribute proportionately to social security, aligning with the overall wage growth.

Despite the increased financial burden, the adjustment is seen as a necessary measure to balance the social security system's income and expenditure.