News - Germany

Germany - November 2018

New Social Security Contributions

New Social Security Contributions

The German Federal Cabinet has published the draft regulation confirming social security contributions for 2019. As provided for in the German Code of Social Law, important social security contribution ceilings are adjusted according to the rise in incomes in the year before last (2017).

Please find the social security contributions for 2019 below (as published on 6 September 2018):

West Germany East Germany
Month Year Month Year
Social security contribution ceiling
General pension insurance €6,700.00 €80,400.00 €6,150.00 €73,800.00
Miners' pension insurance €8,200.00 €98,400.00 €7,600.00 €91,200.00
Unemployment insurance €6,700.00 €80,400.00 €6,150.00 €73,800.00
Health & nursing care insurance €4,537.50 €54,450.00 €4,537.50 €60,750.00
Compulsory insurance ceiling
Health & nursing care insurance €5,062.50 €60,750.00 €5,062.50 €60,750.00
Maximum employer's contribution
subsidy to private health insurance €331.24

Risks for employers

Employees that no longer earn more than the compulsory health & nursing care insurance ceiling as set out above, may become subject to the statutory health insurance and will no longer be entitled to (only) have private insurance (that is, they will have to change to the statutory system).

If an employer overlooks the effect of the new ceilings, in particular, triggering such liabilities, then should the responsible social security authorities conduct a social security audit (which regularly take place every four years) they may be held liable for such payments to the statutory health and nursing care insurance of past years (the total of employer’s and employee’s contributions).

Further information (if needed)

For further information or to discuss any of the issues raised, please contact Stefanie Andrelang (stefanie.andrelang@keller-menz.de) on +49 89 242230-40.