High earners will have less left in 2027: social security contributions will rise

It will be noticeably more expensive for higher earners in 2027. The higher contribution assessment limits in health, pension, nursing care and unemployment insurance will mean higher deductions from salaries in the coming year. Now, in all likelihood, there will be another burden added.

After a tough dispute in the coalition, the federal government decided on September 30th how it wanted to close the billion-dollar hole in long-term care insurance. The result: The general contribution rate of 3.6 percent of employees' gross income should remain unchanged for the time being. However, for certain groups it will be significantly more expensive.

The Handelsblatt has calculated exactly how this will happen in the form of a social security calculator. This allows you to see for yourself how much additional social security contributions you will have to pay in the future.

Specifically, two changes are planned: The contribution assessment limit - i.e. the threshold up to which social security contributions are levied on income - is to increase in 2027 not only by the usual annual adjustment based on wage developments, but also by an additional 300 euros. This means it has risen from today's 69,750 to around 76,500 euros.

In addition, people without children aged 23 and over have to pay 0.3 percentage points higher contributions and thus end up with a contribution rate of 4.5 percent.

Where things get more expensive apart from long-term care insurance

In health insurance, too, the contribution assessment limit increases not only by the usual adjustment amount, but also by a further 300 euros. This means that contributions are due on a larger share of your income. Including the average additional contribution, the contribution rate for employees is 8.75 percent.

Furthermore, the contribution assessment limits for pension and unemployment insurance will also increase - albeit only by the usual annual adjustment. However, since the pension has a contribution rate of 9.3 percent, it represents the largest chunk in absolute terms.

Only 1.3 percent of gross income is due for unemployment insurance. However, there could soon be an increase in contributions. At least the government has not ruled out this in order to plug the Federal Employment Agency's billion-dollar deficit.

What the computer takes as assumptions

The calculator makes some minor assumptions. In general, it only concerns employees' social security contributions. Those of employers, who have to pay the same amount almost everywhere, are not taken into account.

The calculator also assumes that you do not live in Saxony because employees in the Free State make a larger contribution to nursing care insurance. This is because the day of repentance and prayer still applies here.

We also assumed that your income was spread evenly over twelve months and used the average additional contribution rate for statutory health insurance companies of 2.9 percent as a basis.