The contribution ceiling is lowered

The contribution ceiling is lowered

The contribution ceiling for health insurance and long-term care insurance will be reduced.

(09.09.2010) For the first time in 60 years, from 2011 the contribution ceiling in health insurance and the coupled nursing care insurance will very likely be lowered. This means that for the first time since the Federal Government of Germany came into existence, there is a reduction in health and long-term care insurance.

Currently, the contribution assessment limit for health and long-term care insurance is 45,000 euros per year. A reduction to EUR 44,550 a year is expected for 2011. The reduction is clearly related to the global economic crisis. Because the assessment limit is linked to the development of real wages, which have dropped significantly due to the crisis. But whether the contribution ceiling will actually decrease is more of a conjecture and has not yet been officially confirmed by the federal government. In addition, the official figures are still missing.

Is this reduction a relief for employers and employees? First and foremost no, because the new figures are based on the link between the contribution ceiling and real wages. And because real wages have fallen due to the crisis, the reduction in the calculation example is not a relief, but only an adjustment.

A statutory social security-related income limit is referred to as the contribution assessment limit. Contributions to health and nursing care insurance are therefore only calculated below this limit. All contributions that are above are not counted. (sb)

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