On October 11, 2023, the Federal Government presented the new contribution assessment thresholds for social insurance for 2024. The Bundesrat still has to approve them before they are published in the Federal Law Gazette, but this is considered a mere formality. It is important for employers to be aware of the new contributions and apply them from January 1, 2024. The Northwind HR team has compiled a list of the changes and other interesting facts about the new contribution assessment thresholds for social insurance here.
This is what the contribution assessment thresholds for social insurance are for
The contribution assessment thresholds are calculation variables that determine the level of earnings up to which social insurance contributions must be paid. They are also called social insurance calculation limits or compulsory insurance limits and determine the maximum amounts. Any gross income in excess of these limits is not subject to compulsory social insurance and is exempt from contributions. This is intended to keep social security stable.
The new maximum limits are generally set annually and are based on the previous year’s wage and salary trends. The earnings from 2022 were therefore used for the new calculation figures for social insurance in 2024.
Important to know: No entitlements to sick pay, unemployment benefit or pension points are acquired for non-contributory earnings above the compulsory limit.
There is another important aspect of the contribution assessment limits for social insurance. Employees whose wage or salary is above this limit do not have to remain in the statutory health insurance scheme (GKV), but may take out private insurance.
Changes to the contribution assessment thresholds for social insurance in 2024
The income thresholds for social insurance differ slightly between the old and new federal states, which must be taken into account.
Here are the new values compared to the old ones:
Health insurance / long-term care insurance
Compulsory GKV insurance limit: East and West the same: 5,775 euros / month
GKV contribution assessment ceiling: East and West the same: 5,175 euros / month (2023: 4,987.50 euros)
Pension insurance / unemployment insurance
East: 7,450 euros / month (2023: 7,100 euros)
West: 7,550 euros / month (2023: 7,300 euros)
We are here to help you! If you have any questions about the new contribution assessment limits for social insurance, please contact us!