Contribution assessment ceiling

The Beitragsbemessungsgrenze (BBG, contribution ceiling) is the maximum income on which social security contributions are calculated in Germany.

Current values 2026:

Pension insurance:

• West: €8,450/month (€101,400/year)
• East: €8,450/month (aligned since 2025!)
• Contribution rate: 18.6% (9.3% each employer + employee)

Health/long-term care insurance:

• Nationwide: €5,812.50/month (€69,750/year)
• Health insurance contribution: ~17.5% incl. average additional contribution of 2.9% (~8.75% each employer + employee)
• Maximum employee contribution: approx. €509/month

What does that mean in practice?

NO further contributions are due on income ABOVE the ceiling:

• Someone earning €5,000 gross pays ~8.15% health insurance on €5,000 = €407.50
• Someone earning €10,000 gross pays ~8.15% health insurance on only €5,812.50 = €449.27
• The higher earner pays LESS as a percentage of their income!

Why the ceiling is controversial:

• Criticism: high earners are relatively relieved ("regressive effect")
• Counter-argument: benefits (pension, sick pay) are also capped
• Political debate: SPD/Greens want to raise or abolish the ceiling, CDU/FDP are against

Difference from the compulsory insurance limit:

• Contribution ceiling (BBG): up to what amount contributions are calculated (affects EVERYONE)
• Compulsory insurance limit (JAEG): from when you CAN switch to private health insurance (€77,400/year in 2026)