New German Social Security Contribution Caps for 2017
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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):
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|
West Germany |
East Germany |
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Month |
Year |
Month |
Year |
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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 |
|
|
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Subsidy to private health insurance |
€ |
317.55 (reduced € 304.50) |
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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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