Germany to raise pension contribution rate to 19.9% in 2028

The German statutory pension insurance will increase its contribution rate for employees and employers from the current 9.3% each (total 18.6%) to 19.9% for the employee share in 2028, reaching 20% in 2029. The change, announced by Deutsche Rentenversicherung Bund chairman Alexander Gunkel in June in Potsdam, follows the 2026 spring financial forecast that the sustainability reserve will fall from €41.3 billion at the end of 2025 to €11.9 billion by the end of 2027, below the legally required minimum. A higher reserve floor, raised from 0.2 to 0.3 months of spending, also contributes to the need for a rate hike. The increase applies to all insured employees up to the contribution assessment ceiling, meaning the average worker will see a few hundred euros less net pay per year.