News - Germany

Germany - October 2016

New German Social Security Contribution Caps for 2017

The German Federal Cabinet has published the draft of a regulation concerning the social security contributions of 2017.  As provided for in the German Code of Social Law, important social security contribution ceilings are adjusted according to the income in the year before last (2015).

Please find the social security contributions for 2017 below (as published on 12 October 2016):

 

West Germany

East Germany

Month

Year

Month

Year

Social security contribution ceiling

 

 

 

 

 

 

 

 

General pension insurance

6,350.00

76,200.00

5,700.00

68,400.00

Miners’ pension insurance

7,850.00

94,200.00

7,000.00

84,000.00

Unemployment insurance

6,350.00

76,200.00

5,700.00

68,400.00

Health & nursing care insurance

4,350.00

52,200.00

4,350.00

52,200.00

Compulsory insurance ceiling

 

 

 

 

 

 

 

 

Health & nursing care insurance

4,800.00

57,600.00

4,800.00

57,600.00

Maximum employer’s contribution

 

 

Subsidy to private health insurance

317.55 (reduced €  304.50)

Risk for employers

Employees that no longer earn more than the compulsory health and 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 (i.e. they will have to change to the statutory system).

All employers must ensure that the applicable social security contributions are deducted.  As an audit is carried out every 4 years by the responsible social security authority and employers who have failed to act appropriately may be held liable for any arrears to the statutory health and nursing care insurance in respect of both employer’s and employee’s contributions.

Further Information

For further information or to discuss any of the issues raised, please contact Stefanie Andrelang (stefanie.andrelang@keller-menz.de) on +49 89 2422 3040.

Resources

Federal Ministry for Labour and Social Affairs (Bundesministerium für Arbeit und Soziales (BAMS), press release, 12 October 2016.

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