Status: 14.10.2023, 19:09 PM
By: Bjarne Kommnick
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The federal government is planning an increase in the contribution assessment ceiling in 2024. As a result, some receive less money per month.
Frankfurt – For many contributions that employees have to pay to the state, the principle applies: Those who earn more must give up more. It is true that percentage top tax rates cap the share above a certain income threshold, but not the final amount of the sum that has to be surrendered.
Federal Government raises contribution assessment limits: Who is affected?
This is not the case with the contribution assessment ceiling. It protects people – who earn a lot of money – from paying an unlimited amount of money for social security contributions beyond a fixed limit. Now the German government is planning to raise this limit in the coming year and has published a draft for it. As a result, some workers will receive less money in the coming year. Who is affected? Already in the spring, Karl Lauterbach announced an increase in health insurance contributions.
A large part of the population does not even have to deal with the contribution assessment limits. After all, a high income is needed for this. In the current year, for example, the limit for statutory health insurance is a gross income of 5,550 euros per month. According to the industry portal Wirtschaftswoche, just five percent of all employees in Germany earn more than 5,000 euros gross.
What is the Contribution Assessment Ceiling (BBG)?
The contribution assessment ceiling is the amount up to which contributions for the various areas of social security are calculated and paid from the salary subject to social security contributions. There are different contribution assessment limits for health and long-term care insurance as well as for pension and unemployment insurance.
As an example, the contribution assessment ceiling for health and long-term care insurance for one year is EUR 4,425.00 per month (nationwide). For example, with a gross income of EUR 5,000 subject to social security contributions, only EUR 4,425.00 will be charged.
(Source: Federal Office of Administration)
Assessment ceiling for statutory health insurance will increase from 2024
The federal government is planning to raise the compulsory insurance limit for statutory health insurance, i.e. the limit from which someone can switch to private health insurance, from 5,550 euros to 5,775 euros. The contribution assessment ceiling, i.e. when contributions are capped, is to be raised from 4,987.50 euros gross per month to 5,175 euros.
According to the Federal Government, the contribution assessment ceiling for general pension insurance and unemployment insurance is to be raised from 7,300 euros per month in the west and 7,100 euros per month in the east to 7,550 euros in the west and 7,450 euros in the east. On the other hand, the contribution assessment ceiling in the miners' pension insurance is to be raised from 8,950 euros (west) and 8,700 euros (east) to 9,300 and 9,200 euros.
Draft Assessment and Mandatory Limits 2024
Contribution assessment ceiling for health and long-term care insurance: € 5,175 (East and West)
Compulsory insurance limit for health and long-term care insurance: € 5,775 (East and West)
Social security reference amount: €3,535 (West) €3,465 (East)
Contribution assessment ceiling for general pension and unemployment insurance: €7,550 (West) €7,450 (East)
Contribution assessment ceiling for miners' pension insurance €9,300 (West) €9,200 (East)7
Provisional average salary/year in pension insurance €45,358 (East and West)
(Source: Federal Ministry of Labour and Social Affairs)
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The provisional average salary per year in pension insurance, i.e. how much German pension insured persons earn per year, is to rise from 43,142 euros to 45,358 euros. The reference value in social security would increase from 3,395 euros in the west and 3,290 euros in the east to 3,535 and 3,465 euros.