On 21 September 2026, the Federal Ministry of Labour and Social Affairs published the draft regulation setting the German social security thresholds for 2027. It determines up to which level of pay contributions are due next year, and above which income employees may leave statutory health insurance.
The values are based on wage growth of 4.38 percent in 2025. Health insurance also sees a special increase: both the compulsory insurance threshold and the contribution assessment ceiling rise by an additional €300 per month. This increase stems from the act of 24 July 2026 stabilising statutory health insurance contribution rates (GKV-Beitragssatzstabilisierungsgesetz).
The 2027 values at a glance
| Threshold | 2026 per year | 2027 per year | 2027 per month |
|---|---|---|---|
| Contribution assessment ceiling, pension and unemployment insurance | €101,400 | €106,200 | €8,850 |
| Contribution assessment ceiling, miners’ pension insurance | €124,800 | €130,800 | €10,900 |
| Contribution assessment ceiling, health insurance | €69,750 | €76,500 | €6,375 |
| Compulsory insurance threshold, general | €77,400 | €84,150 | €7,012.50 |
| Compulsory insurance threshold for employees privately insured on 31.12.2026 | new | €80,550 | €6,712.50 |
| Reference value | €47,460 | €49,560 | €4,130 |
In arithmetical terms, the values are already fixed: according to the explanatory memorandum, the statutory basis leaves the Federal Government no discretion. Cabinet approval and the consent of the Bundesrat are still outstanding, and the regulation is due to enter into force on 1 January 2027. The values can therefore already be used for payroll and for planning staff costs for 2027.
Higher contribution assessment ceilings
Pay is subject to contributions up to the contribution assessment ceiling; any amount above it is contribution-free. When the ceiling rises, contributions increase for employees whose pay exceeds the previous ceiling, on both the employee’s and the employer’s side. Because of the special increase, the step in health insurance is considerably larger, at €562.50 per month, than in pension and unemployment insurance, at €400.
The subsidy that employers pay to employees with private health insurance under § 257 SGB V is also based on contributory earnings up to the ceiling, and therefore rises as well. Its exact amount further depends on the average additional contribution rate, which will be announced separately for 2027.
Compulsory insurance threshold: who can switch at the turn of the year
Employees whose regular pay exceeds the compulsory insurance threshold are exempt from compulsory health insurance and may take out private cover. Under § 6 Abs. 4 SGB V (Book V of the German Social Code), compulsory insurance ends at the end of the calendar year in which the threshold was exceeded, but only if pay also exceeds the threshold for the following year. For a switch on 1 January 2027, the relevant figure is therefore €84,150. Because of the special increase, this threshold is €6,750 higher than in 2026.
Employees in statutory health insurance whose regular annual pay in 2027 lies between €77,400 and €84,150 therefore remain subject to compulsory insurance, even if they exceeded the 2026 threshold.
Employees already privately insured: a separate threshold
The special increase does not apply to employees who, on 31 December 2026, are exempt from compulsory insurance because their pay exceeds the threshold and who are privately insured. For them, the draft sets a separate threshold of €80,550 under § 6 Abs. 8 SGB V in the version applicable from 2027. If their regular annual pay in 2027 does not exceed this amount, they become subject to compulsory insurance.
They can then apply for an exemption from compulsory insurance (§ 8 Abs. 1 Satz 1 Nr. 1 SGB V). The application must be made to the health insurance fund within three months of the start of compulsory insurance, requires proof of other health cover and cannot be withdrawn (§ 8 Abs. 2 SGB V).
Long-term care insurance: not yet finally settled
In long-term care insurance, the contribution assessment ceiling has so far been linked to the compulsory insurance threshold under § 6 Abs. 7 SGB V (§ 55 Abs. 2 SGB XI). Under the current wording, the special increase therefore does not apply to it, and the ceiling for 2027 would be €72,900 per year, or €6,075 per month. The draft long-term care reform act (Pflegeneuordnungsgesetz) approved by the Federal Cabinet on 30 September 2026 is intended to align long-term care insurance with health insurance. The same draft provides for raising the contribution surcharge for childless members by 0.3 percentage points to 0.9 percent from 1 January 2027. Both will only be certain once the legislative process has been completed.
The marginal employment threshold is not part of the regulation. It follows the statutory minimum wage and rises to €633 in 2027; details are set out in our article on the minimum wage, mini-jobs and midi-jobs.
What employers can prepare now
- Plan staff costs for 2027: For employees above the previous ceilings, budget for higher employer contributions, with the larger step in health insurance.
- Identify borderline cases: For all employees with pay close to the compulsory insurance threshold, determine regular annual pay for 2027, including pay rises already agreed.
- Inform privately insured employees: Anyone privately insured on 31 December 2026 who earns no more than €80,550 in 2027 should be aware of the three-month deadline for the exemption application.
- Distinguish posted employees: Employees posted to Germany with an A1 certificate remain subject to the legislation of the sending state; the German thresholds do not apply to them.
FRADECO supports you at the turn of the year
Would you like to know which of your employees are affected by the new thresholds? We review borderline cases with you before the turn of the year and apply the new values in payroll from January 2027. How we take on ongoing payroll is described under German Payroll & HR.
Information current as of 5 October 2026, based on the draft regulation of the Federal Ministry of Labour and Social Affairs of 21 September 2026.