German Social Security Contribution Ceilings Increase Significantly as of January 1st 2026

Our German member firm Keller Menz highlights the new German social security contribution ceilings and remuneration thresholds applicable as of 1 January 2026.

Germany’s annual adjustment of social security figures results in a marked increase of several key thresholds for 2026. These figures are directly relevant for payroll calculations and have immediate cost and compliance implications for employers, including foreign companies employing staff in Germany.

What employers need to know

Social security contributions in Germany are calculated only up to statutory contribution ceilings.

As of 1 January 2026, a larger portion of employee remuneration becomes subject to mandatory social security contributions for both employers and employees.

In addition, the updated annual remuneration thresholds affect employees’ health insurance status, in particular whether they remain subject to mandatory statutory health insurance or may opt for private health insurance.

Failure to apply the new figures correctly may lead to back payments, late payment surcharges and adverse findings in social security audits.

German social security figures for 2026 (effective 1 January 2026)

• Contribution ceiling – pension and unemployment insurance (nationwide): 
  EUR 101,400 p.a. / EUR 8,450 p.m. 

• Contribution ceiling – health and long-term care insurance (nationwide): 
  EUR 69,750 p.a. / EUR 5,812.50 p.m. 

• General annual remuneration threshold (§ 6 para. 6 SGB V): 
  EUR 77,400 p.a. / EUR 6,450 p.m. 

• Special annual remuneration threshold (§ 6 para. 7 SGB V): 
  EUR 69,750 p.a. / EUR 5,812.50 p.m. 

• Reference value (§ 18 SGB IV): 
  EUR 47,460 p.a. / EUR 3,955 p.m. 
  

Practical impact for employers

Although the annual adjustment of social security figures is a recurring process, the scale of the 2026 increase materially heightens employer exposure.

• Higher labor costs: 
  Increased contribution ceilings directly translate into higher employer contribution amounts 

• Foreign employers are affected: 
  German social security law applies based on the place of employment, not the employer’s seat. Foreign employers with employees working in Germany, including remote workers and secondees, must apply the updated figures correctly, even if payroll is run outside Germany 

• Audit and back-payment risk: 
  Social security audits frequently identify outdated payroll parameters, often resulting in substantial retroactive contribution claims

Recommended employer actions

• Update payroll systems to reflect the 2026 contribution ceilings and thresholds as of 1 January 2026

• Reassess employment cost calculations for employees close to or above the contribution ceilings

• Review international assignment and remote-work arrangements involving Germany

• Ensure coordination between HR, payroll and global mobility functions

Why timely action matters

German social security authorities apply contribution law strictly and retrospectively. Employers who delay implementation or rely on outdated figures risk avoidable financial exposure with limited scope for correction.

Resources

• Federal Ministry of Labour and Social Affairs (BMAS) – Press Release on Social Security Figures 2026 https://www.bmas.de/DE/Service/Presse/Pressemitteilungen/2025/das-aendert-sich-im-neuen-jahr.html 

• Deutsche Rentenversicherung – Social Security Contribution Ceilings 2026 https://www.deutsche-rentenversicherung.de/Nordbayern/DE/Presse-Experten/Zahlen-und-Tabellen/Ausgabe-1-HJ-2026.html 

• Techniker Krankenkasse Statutory Health Insurance Funds –Overview of Social Security Figures 2026 https://www.tk.de/firmenkunden/service/fachthemen/fachthema-beitraege/sozialversicherungs-rechengroessen-2026-2203234?tkcm=ab 

For further information or to discuss any of the issues raised, please contact Stefanie Andrelang (stefanie.andrelang@keller-menz.de) on +49 (0) 89 2422300. 

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