In Germany, social contributions for high earners are set to increase significantly next year.

The Federal Ministry of Labor has proposed raising the contribution assessment ceiling for pensions to €8,050 per month, up from €7,550 in the West and €7,450 in the East.

This change means that income up to this new limit will be subject to social contributions, while earnings above it will not.

Similarly, the ceiling for health and long-term care insurance will rise to €5,512.50 from the current €5,175. These adjustments are based on last year's strong wage growth of 6.44%, ensuring that high earners contribute proportionately to social insurance funding.

The proposal is currently under interdepartmental review within the government.