The Jahresarbeitsentgeltgrenze (JAEG) is the annual income threshold that decides whether you must stay in the statutory health insurance (Gesetzliche Krankenversicherung, GKV) or may opt for private health insurance (Private Krankenversicherung, PKV). You find this limit in German social law and it is 77,400€ (as of 2026).
The JAEG is calculated each year and applies to your gross annual salary from employment.
If your salary is above the Jahresarbeitsentgeltgrenze, you can choose to leave the GKV and take private insurance. If your salary is below the Jahresarbeitsentgeltgrenze, you are obliged to be insured in the statutory system.
Examples:
- If your gross yearly salary is above the Jahresarbeitsentgeltgrenze, you can choose between private and public health insurance.
- If your salary drops below the Jahresarbeitsentgeltgrenze, you usually cannot remain in private insurance and will be subject to public health insurance.
References
Synonyms:
JAEG, income threshold