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.