Key takeaways
- You pay social security contributions from your gross income. The Social Security contributions are for pension, unemployment, health, and long-term care insurance.
- The amount of social security contributions depends on your income.
- The employer pays up to half of the social security contributions.
- There is a cap on the income on which you pay social security. You don’t pay social security above that income limit. The income limit is called the contribution assessment ceiling (Beitragsbemessungsgrenzen).
- The German government increased the Social Security contribution assessment ceiling in 2025. Thus, you’ll get less net income in 2025.
This is how you do it
- You can check how much social security you paid on your payslip from last month.
- You can choose between public and private health insurance if you earn more than the compulsory health insurance limit. The compulsory health insurance limit is 73,800€ (as of 2025) (2026: 77,400€).
Table of Contents
What are social security contributions in Germany?
Germany offers its citizens various social security benefits like pensions, health coverage, unemployment benefits, etc. Every earner in Germany contributes a part of their income to social security. These contributions are called “social security contributions”.
There are four main social security contributions you make in Germany.
- Statutory pension insurance (Gesetzliche Rentenversicherung in German)
- Statutory health insurance (Gesetzliche Krankenversicherung in German)
- Unemployment insurance (Arbeitslosenversicherung in German)
- Nursing or long-term care insurance (Pflegeversicherung in German)
What percentage of gross salary do you pay as social security contributions in Germany?
In Germany, a percentage of your gross salary is deducted as social security contributions. You can check your salary slip to determine how much you pay in social security contributions.
An individual with no children pays around 42.5% of their gross salary in social security contributions. If you are employed, your employer will contribute almost half of the Social Security contribution.
NOTE: There is a cap on the income on which you pay Social Security. You don’t pay social security above that income limit. The income limit is called the contribution assessment ceiling (Beitragsbemessungsgrenzen).
The German government revises the social security percentage and income caps every year. The government uses the wage development in the previous year as a basis for the social security calculations.
Wage development in 2023 forms the basis for social security contributions in 2025. The wages increased by 6.44 percent in 2023.
Similarly, wage development in 2024 forms the basis for social security contributions in 2026. The wages increased by 5.16 percent in 2024 (per the Federal Ministry of Labor).
The table below shows the percentage of your gross salary you contribute to different social security systems in Germany.
| Social security type | Total Contribution Rate | Employer’s share | Employee’s share |
|---|---|---|---|
| Statutory pension insurance | 18.6% | 9.3% | 9.3% |
| Unemployment insurance | 2.6% | 1.3% | 1.3% |
| Statutory health insurance | 14.6% + additional contribution (2.5% average) | 7.3% + 1.25% | 7.3% + 1.25% |
| Long-term care insurance (no children) | 4.2% | 1.8% | 2.4% |
| Long-term care insurance (with 1 child) | 3.6% | 1.8% | 1.8% |
| Long-term care insurance (with 2 children) | 3.35% | 1.8% | 1.55% |
| Long-term care insurance (with 3 children) | 3.1% | 1.8% | 1.3% |
| Long-term care insurance (with 4 children) | 2.85% | 1.8% | 1.05% |
| Long-term care insurance (with 5 or more children) | 2.6% | 1.8% | 0.8% |
Example
Suppose you are single with no kids and earn 3500 € gross per month. The table below summarizes how much you’ll contribute to Social Security.
| Social Security Type | Monthly Contribution (€) | Employer Contribution (€) | Employee Contribution (€) |
|---|---|---|---|
| Pension | 651.00 (3500 € * 18.6%) | 325.50 | 325.50 |
| Unemployment | 91.00 (3500 € * 2.6%) | 45.50 | 45.50 |
| Health Insurance | 598.50 (3500 € * 14.6% + 3500 € * 2.5%) | 299.25 | 299.25 |
| Long-Term Care Insurance | 147.00 (3500 € * 4.2%) | 63 (3500 € * 1.8%) | 84 (3500 € * 2.4%) |
| Total social security contributions paid | 1487.50 | 733.25 | 754.25 |
How high is the social security contribution assessment ceiling in Germany?
You pay social security contributions up to a certain income limit. This limit is called the Social Security Contribution assessment limit (Beitragsbemessungsgrenzen).
You don’t pay social security contributions on the salary above the contribution assessment ceiling. The contribution assessment ceiling varies by type of insurance.
The German federal government adjusts the contribution assessment ceiling each year. The Social Security contribution assessment ceiling increases if the average nationwide income increases.
Income distribution in Germany ->
The table below shows the social security contribution assessment limit in 2023, 2024, 2025, and 2026.
| Social security type | 2023 (in €) Month (year) | 2024 (in €) Month (year) | 2025 (in €) Month (year) | 2026 (in €) Month (year) | Percentage Increase (%) |
|---|---|---|---|---|---|
| Pension (West) | 7300 (87,600) | 7550 (90,600) | 8050 (96,600) | 8450 (101,400) | 4.96 |
| Pension (East) | 7100 (85,200) | 7450 (89,400) | 8050 (96,600) | 8450 (101,400) | 4.96 |
| Health & Long-Term Care | 4987.5 (59,850) | 5175 (62,100) | 5512.5 (66,150) | 5812.5 (69,750) | 5.4 |
| Unemployment (West) | 7300 (87,600) | 7550 (90,600) | 8050 (96,600) | 8450 (101,400) | 4.96 |
| Unemployment (East) | 7100 (85,200) | 7450 (89,400) | 8050 (96,600) | 8450 (101,400) | 4.96 |
As shown in the table, the German government has increased the contribution assessment ceiling (Beitragsbemessungsgrenzen) annually. In 2025, the income limits increased significantly. However, in 2026, the percentage increase is not that much.
Do you pay social security contributions on special payments?
Yes, you pay social security contributions on one-off or special payments. However, only up to the respective pro rata contribution assessment limit ( Section 23a Paragraph 3 SGB IV ).
Pro rata contribution assessment limit = Monthly contribution assessment limit x 5
The table below outlines the pro rata contribution assessment limits for various social security insurances.
| Social security type | 2025 (in €) Month (year) | 2026 (in €) Month (year) |
|---|---|---|
| Pension | 40,250 (8050 * 5) | 42,250 (8450 * 5) |
| Health & Long-Term Care | 27,562.50 (5512.5 * 5) | 29,062.5 (5812.5 * 5) |
| Unemployment | 40,250 (8050 * 5) | 42,250 (8450 * 5) |
Impact of the rise in social security contributions
The increase in the contribution assessment ceiling reduces your net income, especially if you are a high earner. So, your net income in 2026 will be less than in 2025 if your gross income is the same.
Suppose you earned and are earning 10,000 € gross per month in 2025 and 2026.
The table below shows the impact on your net income in 2026.
| Social Security Type | Monthly Contribution (€) 2026 | Monthly Contribution (€) 2025 | Increase in monthly contribution (€) |
|---|---|---|---|
| Pension | 1571.7 (8450 € * 18.6%) | 1497.3 (8050 € * 18.6%) | 74.4 |
| Unemployment | 219.7 (8450 € * 2.6%) | 209.3 (8050 € * 2.6%) | 10.4 |
| Health Insurance | 993.93 (5812.5 € * 14.6% + 5812.5 € * 2.5%) | 942.63 (5512.5 * 14.6% + 5512.5 * 2.5%) | 51.3 |
| Long-Term Care Insurance | 244.1 (5812.5 € * 4.2%) | 231.5 (5512.5 * 4.2%) | 12.6 |
| 148.7€ (1784.4€ per annum) |
If you are an employee, your employer will contribute around 50% to your social security contributions. This means you’ll get 74.35 € (148.7/2) less every month in 2026. It amounts to 892.2 € of lost income in 2026.
What is the compulsory health insurance income limit (Versicherungspflichtgrenze)?
Everyone living in Germany is required to have health insurance. People who earn less than a set income limit are automatically insured with compulsory statutory health insurance.
Those who earn more than the income limit can choose between public and private health insurance.
This income limit is known as Versicherungspflichtgrenze or Jahresarbeitsentgeltgrenze (JAEG) in German. The German government revises the income limit annually in accordance with the nationwide wage increase (§ 6 Abs. 6 SGB V).
Suppose you had private health insurance, but your salary is no longer above the income limit. In this case, you can return to public health insurance.
The compulsory public health insurance limit (Versicherungspflichtgrenze) is 73,800€ (as of 2025) (2026: 77,400€). It was 69,300€ (as of 2024).
The compulsory insurance limit is lower for people who took private health insurance before 2003. The income limit is 69,750€ per annum as of 2026. It was 66,150€ per annum as of 2025.
What is an additional contribution with regard to health insurance?
Health insurance premium comprises two parts:
- Basic contribution: The government sets basic contributions. It is the same for every public health insurer in Germany.
- Additional contribution: Each public health insurance company sets its own additional contribution.
Your health insurance company must announce its new additional contribution by the end of December each year at the latest. Suppose your insurer increases the additional contribution. In this case, you have a special right of termination and can switch to a cheaper public health insurer.
Calculate your savings potential if you switch to a different public insurer ->
NOTE: The German government regulates the medical coverage each public insurer must provide. Thus, 95% of the services of every public insurer are the same.
List of public health insurance companies and their additional contributions ->
Best public health insurance companies for expats in Germany ->
German Healthcare Demystified – Free eBook
- The German healthcare system is complex. This is why we wrote this book to help you navigate it.
- Choosing health insurance is a life-long decision. If you pick the wrong plan, it may cost you dearly in the future.
- Learn what is covered in public and private health insurance and what is not.
- What supplement health insurance plans must you get based on your personal situation?
More topics
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- Can you insure your family members for free in your health insurance?
- Private health insurance costs in Germany
- Private vs public health insurance
- Private health insurance costs in old age
- Why is private health insurance cheaper than public health insurance?
- Employer’s contribution to private health insurance
- Private health insurance for self-employed
- Health insurance for students
- Health insurance for children
- Healthcare in Germany
- Best public health insurance in Germany
