Germany – New Social Security Rates, Thresholds for 2014

Germany – New Social Security Rates, Thresholds f...

Slight changes to Germany’s social security contributions have been implemented.

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Flash Alert 2014-012

Effective 1 January 2014, Germany implemented slight changes to required social security contributions.1 In total, the maximum amounts have increased slightly.


The changes may mean, for some assignees subject to German social security, a slight rise in their contributions. These adjustments should be taken into consideration by payroll administrators with respect to withholdings and by international assignment program managers budgeting for international assignments to/from Germany where the employee taking the assignment is subject to German social security.

The following summary provides an update of the new German rates and maximum contributions in comparison with 2013:

     Social Security Rates for 2014 in Comparison with 2013

     Income ceiling for assessing contributions (annual)








 Statutory pension/unemployment insurance1

 71,400 €

60,000 €

 69,600 €

58,800 €

 Health insurance/nursing care insurance

48,600 € 

 47,250 €

 Contribution rates (employer and employee each pay half of the contributions)    
 Statutory pension insurance



 Unemployment insurance



 Nursing care insurance4

 2.05% + 0.25%2

 2.05% + 0.25%2

 Health insurance (statutory)



 Maximum contributions (monthly)





 Statutory pension insurance

 1,124.55 €  

945.00 €

 1,096.20 €

926.10 €

 Unemployment insurance

 178.50 €

150.00 €

 174.00 €

147.00 €

 Nursing care insurance

 93.15 €5

 90.56 €5

 Health insurance (statutory)

 627.75 €

 610.31 €

 Contribution grant by employer for private health insurance (monthly limit)    
 Contribution for health insurance

 295.65 €

 287.44 €

 Contribution for nursing care insurance

 41.51 €6

 40.36 €6


1 There are two different contribution ceilings which relate to the old federal states and new federal states in Germany respectively. These are referred to as ‘West’ and ‘East’.

2 An additional contribution is made by (certain) childless employees (no employer participation).

3 Contribution rate is 14.6% (paid in equal amounts by employer and employee) and additional surcharge of 0.9% paid by employee.

4 Special rule for Saxony: employees bear the overall costs in the amount of 1.775% (incl. additional contribution).

5 Including an additional contribution for (certain) childless employees.

6 Special rule for Saxony: maximum contribution is 21.26 (2013: 20.67).

The information contained in this newsletter was submitted by the KPMG International member firm in Germany.

© 2016 KPMG AG Wirtschaftsprüfungsgesellschaft, ein Mitglied des KPMG-Netzwerks unabhängiger Mitgliedsfirmen, die KPMG International Cooperative (“KPMG International”), einer juristischen Person schweizerischen Rechts, angeschlossen sind. Alle Rechte vorbehalten.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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