Higher earners face steeper pension and health insurance contributions from 2027
From 2027, workers with higher incomes will see a notable rise in their pension and statutory health insurance payments, adding roughly €102 per month.
A new draft ordinance issued by the Federal Ministry of Labour outlines higher assessment thresholds for the statutory pension, unemployment and health-insurance schemes, which will take effect in 2027. As a result, employees earning above the new limits will face an additional roughly €102 in social-security contributions each month, or about €1,220 annually, assuming current contribution rates and a 2.9% supplemental health-insurance charge.
The increase also includes a one-time monthly surcharge introduced by the health-care reform passed by the Bundestag, intended to keep the health-insurance contribution rate stable. Employers are expected to match the employee’s share, and childless staff may see a modest extra burden from the care-insurance levy. The regulation still awaits endorsement by the federal cabinet and the Bundesrat, and the final impact on care-insurance contributions could rise further if the planned care-reallocation law is adopted.
Why it matters
Higher contributions will cut net pay for well-paid workers and raise labor costs for employers.
In this story
