Several hundred euros
High earners have to prepare for significantly higher taxes
09/07/2023, 5:15 p.m
The social security contribution assessment limits are set to rise sharply next year. With high salaries, this means additional social security contributions of several hundred euros per year.
Anyone who earns 6,500 euros or more will have to expect several hundred euros more in social security contributions next year. This is shown by calculations by the economic research institute ZEW on behalf of the “Handelsblatt”. With a gross monthly salary of 6,500 euros, almost 300 euros more are due per year, and with 7,500 euros it is even more than 600 euros additional.
The reason is the increase in the social insurance contribution assessment limits, which are based annually on wage developments. Up to this limit, employees and employers must pay social security contributions on their gross monthly wages. This time, according to the Ministry of Labor’s draft, the adjustment is significant. According to “The Pioneer”, a wage increase of 4.13 percent is taken into account for the past year.
In the future, contributions to statutory pension and unemployment insurance will be due up to the limit of 7,550 euros per month in the west and 7,450 euros in the east. Anyone who earns more only pays contributions up to this limit. Previously the limit was 7,300 euros in the old states and 7,100 euros in the new states.
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The limit for statutory health and nursing care insurance is set to rise to 5,175 euros per month nationwide on January 1st. So far it was 4987.50 euros. The compulsory insurance limit is to rise from 66,600 to 69,300 euros in annual income – those who earn more can take out private health insurance.
The ZEW calculation also takes into account the expected increase in the additional contribution to statutory health insurance from 0.2 percentage points to 1.8 percent. The higher contribution assessment limits particularly affect high earners and their employers. Anyone who earns less than 5,000 euros will only have to expect a mid-double-digit additional amount in the coming year. According to the report, the Federal Cabinet wants to launch the regulation in mid-October.