First draft regulations provide for lower thresholds and higher contributions.
Income Limit for the assessment of Contributions for 2011
On 3rd September 2010, the Ministry of Employment and Social Affairs submitted the first draft of a regulation for decisive operands applicable to the social security system for 2011.
Statutory Health Insurance
According to the draft new regulations, in 2011, the income limit for the assessment of contributions for statutory health insurance will decrease for the first time – from € 3,750.00 to € 3,712.50 per month (€ 44,550.00 per year respectively). Nonetheless, the contribution of employers and employees will go up in 2011, too. As the employee’s contribution increases to 8.2%, the employees will have to pay a total of 2.76% (€ 98.10 per year) more than in 2010. Due to the rise of the employer’s contribution to 7.3%, the companies will have to pay contributions increased by 3.24% (€ 102.15) for these employees in 2011.
Annuity and Unemployment Insurance
The limit for the assessment of contributions to the annuity insurance and to the unemployment insurance will remain unaltered at € 5,500.00 per month, respectively at € 66,000.00 per year (West Germany) in 2011. In East Germany, this figure increases slightly from € 4,650.00 to € 4,800.00 per month, respectively to € 57,600.00 per year. In West Germany, the monthly reference value will remain unaltered at € 2,555.00 per month (€ 30,660.00 per year) in 2011. In East Germany, this figure increases slightly from € 2,170.00 to € 2,240.00 per month (€ 26,800.00 per year).
Compulsory Insurance Limit
The general yearly income threshold will decrease from € 49,950.00 to € 49,500.00 in 2011. Therefore, the income up to which employees are compulsorily insured with the statutory health insurance decreases for the first time since 1949. Thus, it will be easier to change to private health insurance, particularly as the Federal Government intends to lower the legal obstacles in the context of the health care reform in order to be able to do so. The path to the private health insurance arises after the income threshold for compulsory insurance is exceeded for the duration of one year, presumably if the applicable threshold in the subsequent year will be exceeded as well.