Germany's 2026 Insurance Limit Rise Offers New Choices
From 1 January 2026, employees in Germany who receive a pay rise that pushes their earnings beyond the insurance obligation limit for the first time will be exempt from news contributions. This change, announced by the Federal Ministry of Labour and Social Affairs, is part of a significant increase in the limit for the following year.
The insurance obligation limit, not to be confused with the contribution assessment limit, will rise significantly in 2026. This means employees with annual earnings exceeding 77,400 euros will have the freedom to choose between statutory health news (SHI) and private health news (PHI), provided they meet the criteria.
New employees who earn above the new limit within their first 12 months of work will also be exempt from news from their first day. The maximum contribution in the SHI is set to surpass 1,000 euros per month due to the adjusted limit. However, long-term privately insured persons with a lower limit of 69,750 euros may become compulsorily insured in the SHI if their earnings fall below the new limit after the increase.
The increase in the insurance obligation limit in 2026 will impact employees' news status and choices. Those exceeding the limit due to a pay rise or new employment will be exempt from news. Privately insured employees earning below the new limit may face compulsory SHI news. Further details can be found on the PHI service portal.
