Blockade in the traffic lights
Assessment limit for social security contributions unclear
The “Social Insurance Calculation Size Ordinance 2025” specifies the income limit up to which contributions will be levied next year. There was a dispute about this in the middle of the month. What’s next?
Two weeks ago, the regulation setting the contribution assessment limit for social security contributions was briefly removed from the list of projects being discussed in the Federal Cabinet. The ministry of Federal Labor Minister Hubertus Heil (SPD) now hopes that the regulation, which is important for employees and social security providers, will be decided at the next cabinet meeting on Wednesday next week. But that isn’t certain either.
“We are aiming for a cabinet discussion on November 6th,” a spokeswoman for the Federal Ministry of Labor told the German Press Agency. When asked, the house of Federal Finance Minister Christian Lindner (FDP), who had recently been on the brakes, simply said that it does not comment on cabinet appointments in other departments.
In mid-October, Lindner told “Bild”: “As long as there is no clarity that we are freeing taxpayers from the cold progression, there can be no adjustment of the assessment limit for social contributions.”
High earners should be asked to pay more
According to Heil’s plans, social insurance contributions will in future also be due for higher monthly incomes. More precisely: in statutory pension insurance up to a monthly income of 8,050 euros and in statutory health and nursing care insurance up to a limit of 5,512.50 euros per month. The limits are currently significantly lower. Anyone who earns more does not pay any contributions on the income above. The new regulation is due to come into force on January 1st, which would place a greater burden on higher income earners.
There has been a long-standing dispute in the traffic light about the level of income up to which health and social insurance contributions will be due in the future and about higher tax allowances to reduce income. The FDP supports the latter in the coalition and accuses the Greens of blocking it. The Greens, for their part, are accusing the FDP of blocking the increase in the contribution assessment limit.
dpa
Source: Stern
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