Several 2026 reforms change how much income in Germany is subject to social security and health insurance contributions, which matters for higher‑earning expats who work in or maintain strong income ties to Germany.

Higher caps for pension and unemployment insurance

The contribution assessment limit (Beitragsbemessungsgrenze) for public pension and unemployment insurance rises from 96,000 euros in 2025 to 101,000 euros in 2026.

The combined pension contribution rate remains at 18.6 percent, split equally between employee and employer, but because the cap is higher, high earners pay more in absolute terms.

An employee with income above the new 101,000‑euro cap can expect to pay more than 70 euros extra per month in pension contributions alone compared with the previous year, with unemployment insurance following a similar pattern.

Health and care insurance: higher thresholds too

In 2026, the contribution ceiling for statutory health insurance is set at 5,812.20 euros of monthly income, while the ceiling for statutory pension contributions is 8,450 euros per month.

The income threshold required to leave the public health system and choose private insurance also jumps to around 77,000 euros, which makes private coverage less accessible for moderate high earners.

For people earning roughly the average salary of about 55,000 euros, these changes are less noticeable, but they are significant for expats on high salaries or international assignments in Germany.

Other 2026 money‑related changes

Germany is also introducing an “active retirement” policy and rebranding the long‑term unemployment benefit Bürgergeld as Neue Grundsicherung, with a likely start date of July 1, 2026, though the monthly standard amount of 563 euros remains unchanged.

The commuter allowance for tax purposes is set to increase to 38 cents per kilometre and will apply from the very first kilometre travelled, improving potential tax deductions for long‑distance commuters.

What German expats and cross‑border workers should consider

• High‑earning expats working in Germany should review their 2026 payslips to understand higher pension and unemployment deductions due to the new 101,000‑euro cap.
• Anyone close to the threshold for private health insurance should reassess whether switching is still possible or attractive after the jump to around 77,000 euros.
• Cross‑border commuters can benefit from the increased commuter allowance when filing German tax returns.