News - Germany

Germany - October 2011

Proposed increase in Social Insurance contribution ceilings for 2012

On September 8th 2011, the Federal Ministry of Labour presented the draft bill for the Social Insurance operands regulation for 2012.  The draft intends an increase for many contribution assessment ceilings as wage inflation amounted to approx. 2% in the previous year (2010).

Statutory Health Insurance

The assessment ceiling for the Statutory Health Insurance is likely to rise from 3.712,50 € per month (44.550 € per year) to 3.825 € (45.900 € per year).  The maximum rate for National Health Service patients will then be 388 € (instead of 377 € to date) per month for their insurance coverage.

Pension and Unemployment Insurance

There are 2 different contribution ceilings which relate to the former West Germany and East Germany respectively.  These are referred to as ‘West’ and ‘East’.  The annual assessment ceiling (West) shall be lifted to 67.200 € (monthly 5.600 €) for General Pension and Unemployment Insurance and to 82.800 € (monthly 6.900 €) for the Miners Pension Insurance.  The contribution ceiling (West) is likely to amount to 31.500 € (monthly 2.625 €) next year.  However, the contribution ceiling (East) and the assessment ceiling (East) for the General and the Miners’ Pension and Unemployment Insurance will remain unchanged.

Social Security Ceiling

In 2012, the cap on annual remuneration subject to contributions is likely to increase to 50.850 € (monthly 4.237,50 €).

Rate Changes?

It is still unclear if the rates of contribution for the Health Insurance and especially for the Pension and Unemployment Insurance will change due to political concerns to maintain economic growth.

For further information or to discuss any of the issues raised, please contact Joachim Menz on +49 89 242230-0.