study
Social security contributions will rise sharply in the coming years
According to a study, the contributions of the various insurance branches could rise to 48.6 percent by 2035 (symbolic image). Photo
© Jens Kalaene/dpa-Zentralbild/dpa
The economy is sluggish, consumption is cautious – what will happen to social security contributions in the coming years in this situation? A new study does not bode well.
According to a new study, employees and employers in Germany are facing sharp increases in wages in the coming years. Social security contributions. By 2035, contributions from the various insurance branches could rise by a total of 7.5 points to 48.6 percent, as the study available to the German Press Agency shows. The Berlin-based IGES Institute had calculated the development of contributions for pension, health, nursing and unemployment insurance on behalf of DAK-Gesundheit, which seems obvious from today’s perspective.
To do this, the researchers assumed average values for the variables that determine contributions – the birth rate, life expectancy, migration and wage development. They presented the deviations in contributions for both more favorable and less favorable developments. DAK CEO Andreas Storm called on politicians to intervene effectively in the development and prevent an explosion in contributions.
DAK: 40 percent cap unrealistic
Storm warned that, contrary to previous political announcements, social security contributions could not realistically be capped at 40 percent. In statutory health insurance alone, contributions are threatened to jump from 16.3 to 19.3 percent over the next ten years. The head of the fund called for a stability pact for statutory health insurance. The federal government would have to reimburse the funds for the costs of insuring people on citizen’s income. The federal subsidy for statutory health insurance would have to increase annually. Storm also suggested that statutory health insurance funds’ expenditure should be linked to the average development of contribution-based income. This would act like a “dynamic expenditure cap,” said the head of the fund.
In nursing care, the contribution rate could rise by 0.7 percentage points by 2030. According to the study, the contribution rate for unemployment insurance will initially fall from 2.6 percent to 2.5 percent by 2027. An increase to 3.0 percent is then expected by 2035. According to the study and taking into account the planned traffic light pension package, contributions for statutory pension insurance are expected to rise from the current 18.6 percent to 22.3 percent by 2035.