According to media reports, the federal government wants to increase the contribution assessment limits for social security contributions from 2024. This means that higher earners would be asked to pay more. Recently, the plans in the traffic light were controversial.
Citizens with higher incomes should pay higher social security contributions in the future. The traffic light coalition has been discussing the additional burden for higher earners for a long time – now, according to the dpa news agency, the federal cabinet is to launch precisely these plans in mid-October. Accordingly, there is a draft from the Federal Ministry of Labor for a corresponding regulation. The news portal “The Pioneer” reported about it first.
The increase is to be done by raising the so-called contribution assessment limit. In the case of statutory pension and unemployment insurance, this limit is currently EUR 7,300 per month in the new federal states and EUR 7,100 in the old federal states. No taxes have to be paid on what someone earns in addition. This limit is reported to be raised to €7,550 in the West and €7,450 in the East per month.
The contribution assessment limit for statutory health and long-term care insurance should also increase accordingly. According to the draft, it should be nationwide at 5,175 euros from January 1 instead of the current 4987.50 euros per month. The compulsory insurance limit is to rise in the coming year from 66,600 to 69,300 euros in annual income. If your earnings are above this limit, you can take out private health insurance.
FDP so far critical of higher assessment limits
In the past, the idea of asking high earners to pay more through a higher contribution assessment limit was controversial within the traffic light coalition. While the SPD and the Greens supported the plans, they were met with criticism from the FDP. Christine Aschenberg-Dugnus, health politician in the party, had warned that an “additional tax on work” would be levied in this way.
Extensive criticism also came from workers’ associations. An increase in the contribution assessment ceiling would also mean an increasing financial burden for employees.