News - Germany

Germany - October 2015

New social security contributions

The German Federal Cabinet has published the draft of a regulation concerning the social security contribution ceilings of 2016. 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 (i.e.2014 for 2016 contributions).

Please find the social security contributions for 2016 below (as published on 7 September 2015):

 

West Germany

East Germany

Month

Year

Month

Year

Social security contribution ceiling

       

General pension insurance

EUR 6 200.00

EUR 74 400.00

EUR 5 400.00

EUR 64 800.00

Miners' pension insurance

EUR 7 650.00

EUR 91 800.00

EUR 6 650.00

EUR 79 800.00

Unemployment insurance

EUR 6 200.00

EUR 74 400.00

EUR 5 400.00

EUR 64 800.00

Health & nursing care insurance

EUR 4 237.50

EUR 50 850.00

EUR 4 237.50

EUR 50 850.00

Compulsory insurance ceiling

       

Health & nursing care insurance

EUR 4 687.50

EUR 56 250.00

EUR 4 687.50

EUR 56 250.00

Maximum employer's contribution

 

subsidy to private health insurance

EUR 309.34 (reduced EUR  296.63)

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).Risk for employers

If the employer does not consider the effect of the new ceilings, should the responsible social security authorities conduct a social security audit (which regularly take place every four years) they may be held liable for payments to the statutory health and nursing care insurance for the past years (the total of employer’s and employee’s contributions).

Resources

Periodical 'NWB Steuer- und Wirtschaftsrecht', 2855, 21 September 2015, 'NWB Verlag GmbH & Co. KG'

Further Information

For further information or to discuss any of the issues raised, please contact Joachim Menz on +49 89 242230-10, Keller Menz

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