German managers oppose a sudden increase in contribution assessment limit
“A continuous or sudden increase in the contribution assessment limit places a disproportionate burden on highly qualified professionals and high-performing employees.” said the President of CEC European Managers’ German organisation, Roland Angst.
The German Federation of Manager Associations (ULA—Deutscher Führungskräfteverband) has strongly opposed the proposed increase in the contribution assessment limit for statutory health and long-term care insurance.
The current German Government proposal suggests a significant hike in the contribution assessment limit. The increase aims to grow from the existing €62,100 up to €96,600, aligning it with the new limit for statutory pension insurance starting in 2025.
This would result in an additional financial burden of up to 55 percent for employees earning above this threshold.
ULA President Roland Angst emphasizes that such a drastic increase could undermine trust in the German social security system by disproportionately affecting high-performing professionals and qualified employees.
“Without far-reaching structural reforms, we risk politicians undermining the trust of those who support our social system. We will not let up in the discussion about a better solution,” Angst stated.
Understanding “Beitragsbemessungsgrenze”
In the German context, the Beitragsbemessungsgrenze (contribution assessment limit) defines the maximum income amount on which statutory health and nursing care insurance contributions are calculated.
Earnings above this threshold are exempt from additional insurance contributions. This limit is regularly adjusted to account for changes in wages and economic conditions.
The recent debate over increasing this limit stems from financial pressures faced by the statutory health and nursing care insurance systems.
For many policymakers, raising the contribution assessment limit is seen as a potential solution to boost revenue without altering the overall contribution rates. However, this approach is contentious as it places the financial burden on a specific segment of the workforce—mainly the leaders and the managers.
In that sense, our German colleagues at ULA argue that a sharp increase in the assessment limit is not a sustainable solution. It would generate additional revenue only in the short term while potentially eroding trust in the social security system.
Such an increase could be perceived as a penalty on success, disproportionately impacting employees who are already contributing significantly to the system.
Our member organisation advocates for a balanced approach that includes structural reforms to enhance the efficiency and competitiveness of the healthcare system, rather than merely relying on increased contributions.
ULA calls for measures such as improved cost management and competitive reforms within the healthcare sector to address the root causes of financial strain.
“Any adjustments to the contribution assessment limit must be accompanied by appropriate tax reliefs to avoid overburdening contributors,” said German leaders and managers.
This perspective aligns with broader calls for the abolition of “bracket creep”—the phenomenon where inflation pushes taxpayers into higher tax brackets, resulting in an increased tax burden without a corresponding increase in real income.
Finally, ULA executive board urges the Federal Minister of Health in Germany to take a proactive role in implementing reforms that promote long-term sustainability and fairness.
By focusing on structural improvements and cost controls rather than short-term revenue increases, ULA believes that the German social security system can maintain the trust and support of its contributors.
In conclusion, ULA acknowledges the financial challenges facing statutory health and nursing care insurance but rejects a sudden increase in the contribution assessment limit and calls for comprehensive reforms that strengthen competition and address cost management, ensuring the long-term viability and fairness of the social security system.
As a member organisation of CEC European Managers, ULA represents the interests of German managers on both national and European levels, advocating for policies that support sustainable economic and social systems.
A continuous increase or sudden increase in the contribution assessment limit places a disproportionate burden on highly qualified professionals and high-performing employees.
Roland Angst, President of the German Federation of Manager Associations
ULA – Deutscher Führungskräfteverband
