General

Deadlines for contribution reports for 2025

Note the following deadlines for submitting contribution reports and due dates for 2025: 

1 applies to federal states where Reformation Day is a public holiday.

Contribution Assessment Ceiling 2025

The contribution assessment ceiling (BBG) is the maximum amount of remuneration up to which contributions for social security are calculated. Income above this limit is not taken into account in the calculation of contributions. 

As of 01.01.2025, there is for the first time a federally uniform BBG in statutory pension and unemployment insurance. 

Annual Earnings Threshold 2025

The annual earnings threshold (JAEG) or compulsory insurance threshold, is the limit that determines whether an employee is subject to compulsory health insurance or is exempt and thus has the right to choose between statutory or private health insurance.

Contribution rates for 2025

Reference value 2025

The reference value is an important baseline in social insurance for a variety of different thresholds. This includes, inter alia, the assessment of the minimum contributions of voluntarily insured persons, but also the additional earnings limit of recipients of a full disability pension. 

The reference value reflects the average remuneration in Germany from the penultimate calendar year. Here too, a separation between East and West is no longer necessary from 01.01.2025. 

Non-cash benefit values 2025

Non-cash benefit values are defined values that determine the monetary value of benefits in kind to employees, such as free food or accommodation, which an employer can provide to its employees in addition to salary. There will also be an adjustment of these values in 2025. The total monthly non-cash benefit value has risen to €615.00.

Please note:
The following tables refer to adult employees. Different amounts apply to young people and trainees.

Free catering in kind 2025

Free accommodation in kind 2025

Elimination of the East and West Jurisdiction Differentiation

Background to the legal jurisdiction distinction

After the reunification of the Federal Republic of Germany and the GDR, the GDR pension scheme was transferred to the statutory pension insurance of the Federal Republic of Germany with the Pension Transition Act. 

Until incomes are equalized, lower calculation factors should apply to the new federal states. Because of this, the legal jurisdiction identifier was introduced for differentiation. 

By the end of 2024, the Pension Transition Completion Act should gradually align the values. 

DEÜV reporting procedure 

For the reporting periods up to and including 31.12.2024, the legal jurisdiction differentiation is maintained. For 2024, the employer must continue to file the appropriate legal jurisdiction with “W” and “O” in social insurance reports. This also applies to cancellation notifications. For reports from calendar year 2025 onwards, the specification of legal jurisdictions is omitted from social insurance reports. 

Contribution reports 

The employer must continue to indicate the legal jurisdiction for contribution reports. This procedure will be maintained at least until 31.12.2025. There are no changes to the procedure for calculating and transmitting the contribution report.

Adjustment of the marginal employment threshold and transitional range

Marginal employment threshold

Effective 01.01.2025, the marginal employment threshold for employees in marginal employment will increase from €538.00 to €556.00. The reason for this is the increase in the legal minimum wage to €12.82 and the dynamic adjustment of the marginal employment threshold linked to it. Accordingly, the annual earnings threshold also increases to €6,672.00.

Transition area

With the increase in the marginal employment threshold, the pay limit for employees in the transitional range (midi-job) also changes. From 01.01.2025, employment will be in the transitional range if the regularly earned wage is between €556.01 and €2,000.00. 

Factor F will change to 0.6683 for 2025. Accordingly, the fixed amount for the simplified formula also adjusts to 255.4365651. 

Simplified formula for calculating the total social insurance contribution:

• CE (contributory earnings) = 1.127718283 x AS (actual salary) - 255.4365651

Simplified formula for employee share of total social security contribution: 

• CE = 1.285041551 x AS - 770.0831025

The employer's share is determined by deducting the employee's share of the total social insurance contribution. 

Extension in the retrieval procedure for the eAU

Rehabilitation and preventive services

Since 01.01.2023, the eAU procedure is to be used by employers. As of 01.01.205, the data exchange procedure is expanding and optimizing. 

Inpatient rehabilitation and preventive care services will be integrated for the first time. Employers receive electronic feedback here if the benefits are borne by the statutory health insurance funds or the German Pension Insurance. The feedback in the retrieval procedure is now marked “5 - Rehab/Prevention”. 

Inpatient and partially inpatient treatment

From 01.01.2025, the procedure for requesting hospitalizations of workers should also be improved. In the event that an employee is still in inpatient treatment during the employer’s electronic request, a date “Probably_Certificate_Until” is transmitted in the retrieval procedure. In addition, the health insurer proactively automatically transmits the actual discharge date to the employer, which takes place as soon as the notification from the hospital to the health insurer has been made. For partially inpatient treatments, we will issue a new notification from 01.01.2025 without any from and until date. Here, previous problems in the transmission of partially inpatient treatments are to be avoided in the future.

Reporting reasons for incorrect information and data in paper form

As of 01.01.2025, the new reporting reason “7 - under review” is introduced for the event that health insurers receive objectively incorrect information from service providers or data is transmitted in paper form in the replacement procedure and therefore does not meet the specifications of the data set and thus cannot be fully digitized. Similar to reporting reason “4 - certificate is not available”, this is an interim report. If the review can be completed within 28 days, the correct data will be automatically transmitted to the employer. 

Foreign and private medical certificate of incapacity 

If the health insurer has a private medical or foreign certificate of incapacity, these data can be transmitted to the employer from 01.01.2025. The health insurers use the new reason for reporting “8 – other certificate is available” without a from and until date of incapacity for work. The employer has no entitlement to completeness from the health insurers in this respect.

Change of health insurer

From 01.01.2025, in the event of a change of health insurer, the procedure will be optimized and the new reporting reason “9 - Forwarding procedure” will be transmitted.

Outlook for care reform

Adjustment of care reform 

Since 01.07.2023 there are contribution reductions in nursing care insurance for children who have not yet reached the age of 25. For a more efficient design, a new digital "Data Exchange Procedure for Social Nursing Care Insurance Contribution Differentiation" (DaBPV) is expected to be introduced from 01.07.2025.

Simplified procedure until 30.06.2025 

Since 01.07.2023, a simplified verification procedure has been in force for the nursing insurance contribution. This is still valid until 30.06.2025. In this transitional period until the new data exchange procedure begins on 01.07.2025, proof of the number and age of children under 25 years of age is deemed to have been provided if the employee provided the information informally at the request of the employer or the care insurance fund. 

Data Exchange Procedure for Social Nursing Care Insurance Contribution Differentiation (DaBPV) from 01.07.2025

From 01.07.2025, a new electronic procedure for the collection and proof of parental status as well as of children eligible for consideration will be introduced with the care reform. The employer is proactively and automatically informed via the DaBPV procedure when changes occur. 

In future, the Federal Central Tax Office (BZSt) will serve as the central data source. Children not recorded for tax purposes are an exception. This includes the following:

• Stepchildren
• Foster children
• Children living abroad 

These cannot be processed through the new procedure. Employers must continue to use the simplified procedure to take children into account in the calculation of contributions. 

The technical connection of the health insurers to the BZSt takes place via the interface of the Central Allowance Office for Retirement Assets (ZfA). Since employers do not have direct access to the interface of the ZfA, they are technically connected via an interface that is used by the Pension Insurance Data Office (DSRV). 

New employees 

With the start and end of employment subject to compulsory nursing care insurance, employers must file a report to the DSRV via an approved payroll accounting program or via the social insurance reporting portal from 01.07.2025. This is followed by immediate feedback and subsequent proactive notifications of changes in parental status and the number of children to be considered. 

Initial retrieval during ongoing employment 

For all employees who were already employed by the employer before 01.07.2025, an initial retrieval for 01.07.2025 must be carried out by 31.12.2025 at the latest. 

With this retrieval, employers take out a de facto subscription for all future statuses on employee parental status. This basically means that the response from the BZSt includes a chronological development of the proof of parentage of the number of children until the child is no longer eligible upon reaching the age of 25. 

Interest on overpaid contributions

In the event that employers do not correctly take into account the number of children during the transition period between 01.07.2023 and 30.06.2025, the nursing insurance contribution will be incorrectly calculated. In certain cases, the overpayment must bear interest. 

If an employer verifiably does not query the children to be considered by 30.06.2025, employees are entitled to interest on the amount to be reimbursed in the event of overpaid contributions. 

From the calendar month after payment (at the earliest from 01.08.2023) to the calendar month before reimbursement, the claim will bear interest at a rate of 4%. Employees are not required to make a request. Reimbursement must be paid by the employer or offset against future contributions. Interest will only be charged until 30.06.2025.

There is no entitlement to interest if contributions have already been refunded by 30.06.2025. Similarly, there is no entitlement if the employer has already applied the simplified procedure during the transition period and has not waited for the introduction of the digital procedure. 

Further information can be found in the circular of the National Association of Statutory Health Insurance Funds (RS 2024-183 of 03.04.2024)

Other changes

Child care sick pay

The Nursing Studies Strengthening Act extended the entitlement to child care sick pay. Since 01.01.2024, for the years 2024 and 2025, employees have been entitled to up to 15 working days per calendar year for children under the age of 12 covered by statutory health insurance. Single parents are entitled to 30 working days per calendar year. In the case of multiple children, the entitlement increases to 35 and 70 working days respectively. 

Additional earnings limit for full disability pensions

From 01.01.2025, the additional earnings limit will increase to €39,322.50 for partial disability and €19,661.25 for full disability. 

A1 certificates for cross-border commuters

From 01.01.2025, the application for A1 certificates for cross-border commuters will be integrated into the electronic application procedure A1. In principle, issuance is not compulsory for cross-border commuters, but may be necessary in certain cases. Previously, only a written application was possible. 

Electronic transmission of financial accounting data

Since 01.01.2023, employers are obliged to provide data necessary for audits electronically via an approved payroll accounting program of the Pension Insurance. Until now, the obligation has only covered data relevant to remuneration. 

From 01.01.2025, only electronic transmission of financial accounting data will be compulsory. 

Please note:
For data up to 31 December 2026, employers can opt out of electronic transmission of payroll accounting via euBP upon request. The application shall be made informally to the pension insurance institution responsible for the audit, stating the company registration number. 

Change employer account data record for information in employer account

Since 1 January 2023, employers have been required to electronically submit, at the request of the competent body, the information required for setting up an employer account for the next payroll accounting. Employers can also proactively report changes without the need for a prior request. The procedure also allows for the granting of a SEPA direct debit mandate, but revocations of such a mandate had to be made in writing. From 1 January 2025 it should be possible to carry out these revocations electronically as well.