Employees only pay contributions to statutory pension, unemployment and health insurance up to a certain salary. Where the limits lie.
The most important things at a glance
You know it from your pay slip: month after month, part of your salary does not go into your account, but into the various social insurance schemes such as pension or health insurance.
However, these contributions are only charged up to a certain income limit. This so-called contribution assessment limit changes every year. We will show you what the amount of the calculation depends on, where it currently lies for the various insurance companies and what the compulsory insurance limit is all about.
The contribution assessment ceiling determines up to what level of income you must pay contributions to statutory social insurance. It therefore also determines the maximum contribution to social insurance.
The portion of your income that exceeds this limit is irrelevant for the calculation of contributions. This means that you do not have to pay any further social security contributions above this amount.
But be careful: If your income exceeds the contribution assessment limit, this does not mean that you no longer have to pay into social insurance schemes such as pension or unemployment insurance. The only exception is health and nursing care insurance.
If your income is high enough, you can choose whether you would rather have private insurance instead of statutory insurance. The point at which this is possible is determined by the annual wage limit, also known as the compulsory insurance limit (more on this below).
The federal government adjusts the calculation values in the social security calculation order every year – depending on how gross wages and salaries have developed. If the average income increases, the contribution assessment limit also increases and vice versa.
There are two different values for the contribution assessment limit: one for statutory pension and unemployment insurance and one for statutory health and long-term care insurance.
For statutory pension insurance The following contribution assessment limits apply:
- 2024: 7,550 euros/month (90,600 euros/year) in the West, 7,450 euros/month (89,400 euros/year) in the East
- 2023: 7,300 euros/month (87,600 euros/year) in the West, 7,100 euros/month (85,200 euros/year) in the East
For the miners’ pension insurance The following contribution assessment limits apply:
- 2024: 9,300 euros/month (111,600 euros/year) in the West, 9,200 euros/month (110,400 euros/year) in the East
- 2023: 8,950 euros/month (107,400 euros/year; 298 euros per calendar day) in the West, 8,700 euros/month (104,400 euros/year; 290 euros per calendar day) in the East
The same contribution assessment limit applies to unemployment insurance as to pension insurance:
- 2024: 7,550 euros/month (90,600 euros/year) in the West, 7,450 euros/month (89,400 euros/year) in the East
- 2023: 7,300 euros/month (87,600 euros/year) in the West, 7,100 euros/month (85,200 euros/year) in the East
The contribution assessment ceiling in health and nursing care insurance remains the same in both the East and the West:
- 2024: 5,175 euros/month (62,100 euros/year)
- 2023: 4,987.50 euros/month (59,850 euros/year)
The reference value represents the average wage in Germany from the previous calendar year. It is used in social insurance for various calculations.
In 2024, the monthly reference value will be 3,535 euros in the west and 3,465 euros in the east. In health and nursing care insurance, the western value applies nationwide. In pension and unemployment insurance, however, a distinction is still made between west and east.
The amount of your social security contributions depends on the amount of your gross wage or salary. They are calculated based on a percentage that is usually split equally between the employer and employee. Only in the case of long-term care insurance are employees without children asked to pay more.
The following contribution rates apply for 2024:
- Statutory pension insurance: 18.6 percent
- Miners’ pension insurance: 24.7 percent
- Unemployment insurance: 2.6 percent
- Statutory health insurance: 14.6 percent
- Nursing care insurance: 3.4 percent (plus 0.6 percent for those without children)
The statutory health insurance companies also charge an additional contribution, which they can determine themselves. In 2024, dozens of funds increased the contribution. Read here which ones.
Good to know: If your health insurance provider changes, you can make use of your special right of termination. Read here exactly how to do this.
In health and nursing care insurance, you have the choice between statutory health insurance (GKV) and private health insurance (PKV) if you have a certain income. How much you have to earn for this is determined by the annual wage limit (JAEG), as it is called in technical jargon. The more common term for this is the compulsory insurance limit.
In 2024, this limit will be 5,775 euros per month or 69,300 euros per year. Like the contribution assessment limit, the compulsory insurance limit is also based on the wage level of the previous year.
If your income is below the compulsory insurance limit, you are automatically compulsorily insured in the statutory health insurance scheme. If you are privately insured and fall below the compulsory insurance limit again, you can switch back to the statutory insurance scheme.
