Contribution Limits 2027: Who Pays More

The federal cabinet has approved the contribution limits 2027 for statutory social insurance, and the Bundesrat, the upper house of the federal parliament, still has to give its consent on 20 November. The new ceilings decide how much of a salary counts when pension, unemployment, health and care contributions are calculated. They also set the income level at which some employees may leave statutory health insurance for a private policy. For foreigners working in Germany, the change will appear on payslips from January and can affect which health insurance is open to them.

Contribution limits 2027 at a glance

According to the Techniker Krankenkasse (TK), the ceiling for pension and unemployment insurance, the Beitragsbemessungsgrenze, will be 8,850 euros a month, or 106,200 euros a year. The Barmer health insurer gives the same figure. For health and care insurance the ceiling is 6,375 euros a month, or 76,500 euros a year. The third key figure is the Versicherungspflichtgrenze, the annual earnings threshold that decides whether an employee must stay in statutory health insurance. For 2027 it is 84,150 euros a year, or 7,012.50 euros a month.

The values are fixed by a government regulation, the Verordnung, which still needs the Bundesrat's consent. Handwerksblatt and steuertipps report the same figures. Barmer and TK describe them as expected values until the regulation is final. The Bundesrat's agenda lists the regulation as item 48 for 20 November, and its committees recommend approval. The Deutsche Rentenversicherung (DRV) says the wage development behind the new values is 4.38 percent.

Who pays more under the 2027 contribution limits

Statutory social insurance contributions are a fixed percentage of gross pay, but only up to the ceiling. Earnings above the limit do not add to the calculation, so a person earning far more than the ceiling pays the same amount in contributions as someone who earns just at it. That is why the limits matter most for higher earners: the ceilings define how much of their income is included in social insurance calculations.

Because the ceilings rise, people who earn above them see the biggest change. The pension and unemployment ceiling goes up by 400 euros a month, from 8,450 euros in 2026, a rise of 4.73 percent. Anyone earning at or above that level will have more of their salary included in the calculation, so their contributions go up. The health and care ceiling rises to 6,375 euros a month, which means employees in the upper middle range also pay on a larger part of their income.

Lower earners are affected less directly. Their contributions are calculated on their full pay, so they only see a change when their salary changes. Employers pay their half of the contributions on the same base, so the increase is shared, but the employee sees it on the payslip. Anyone who wants to check the exact calculation can compare the figures on their next statement with the ceilings above.

What the private insurance threshold means for expats

The 84,150 euro threshold is the figure that matters most for anyone deciding between statutory and private health insurance. According to TK, the Versicherungspflichtgrenze, also called the Jahresarbeitsentgeltgrenze (JAEG), decides whether an employee is subject to compulsory insurance or is free to choose. Employees whose yearly pay stays below the threshold must remain in the statutory system, the gesetzliche Krankenversicherung. Employees above it may choose a private health insurer if they meet the rules for switching.

For expats, the difference can be large. Private premiums depend mainly on age, health and the chosen benefits, while statutory contributions rise with income up to the health ceiling. A private policy can look cheaper in the first year and cost more over decades, so anyone considering a switch should compare the long-term cost, the care cover and whether family members can be included. Our guide to public and private health insurance in Germany explains the main differences.

When the contribution limits 2027 take effect

The Bundesrat is scheduled to vote on the regulation on 20 November 2026. If it consents, the contribution limits 2027 apply from 1 January 2027. Until then the 2026 values remain in force, so the first pay statements showing the new ceilings will be those for January 2027. The regulation sets the ceilings only. It does not decide the contribution rates themselves.

The health insurance contribution also depends on the supplementary rate, the Zusatzbeitrag, which each Krankenkasse sets separately. That rate is not fixed by these ceilings, so a higher ceiling does not automatically mean a higher total bill for every insured person. Our overview of the 2027 health insurance rate explains how the supplementary rate works.

What this means for expats

Expats who work as employees should check the new figures on their payslips from January and ask the payroll department whether the ceiling has been applied correctly. Under the contribution limits 2027, anyone earning below 84,150 euros a year cannot choose private health insurance as an employee and must join a statutory Krankenkasse. Anyone above the threshold should request written quotes from private insurers and compare the full cost before making a switch.

Freelancers and self-employed people follow different rules, so the threshold is only one part of the picture. Our guide to the social security system explains how the different branches fit together and which office handles which contribution.