Germany increases employer health insurance contributions for low‑wage jobs

The German government plans to raise the statutory health‑insurance contribution that employers pay for minijob workers from the current 13 % to 16.9 %, with a draft proposal even raising it to 17.5 %. Because the contribution for the transition‑pay band (midijobs earning €603‑€2,000) is linked to the minijob rate, employers will also see higher costs for these workers. The ministry estimates the annual extra burden on employers at €2.3 billion, including an unaccounted €0.5 billion for additional social‑security contributions.

In a related reform for 2027, the health ministry aims to close a €7.6 billion deficit in the long‑term care insurance fund by increasing contributions from childless insurees, high earners and employers, raising the contribution assessment ceiling and limiting free spouse co‑insurance. Employers, represented by the IKK and industry bodies, warn that the measures could add around €2 billion in costs and squeeze labour‑intensive crafts businesses.