What is Contribution Assessment Ceiling?
Quick Summary
The contribution assessment ceiling (BBG - Beitragsbemessungsgrenze) determines up to which income social insurance contributions are calculated. Income above is contribution-free. In 2026, the limit for pension insurance is EUR 7,550 monthly (West Germany).
Definition in Detail
The contribution assessment ceiling (BBG - Beitragsbemessungsgrenze) is a statutory upper limit in the German social insurance system. It determines up to which gross income contributions to social insurance are levied.
The BBG applies to:
- Pension insurance: Higher BBG (EUR 90,600/year 2026 West)
- Unemployment insurance: Same BBG as pension insurance
- Health insurance: Lower BBG (EUR 66,150/year 2026)
- Care insurance: Same BBG as health insurance
Important: The BBG is adjusted annually by the federal government and is based on the development of wages and salaries.
Contribution Assessment Ceilings 2026
| Insurance Branch | Monthly | Annually | Region |
|---|---|---|---|
| Pension Insurance | EUR 7,550 | EUR 90,600 | West |
| Pension Insurance | EUR 7,450 | EUR 89,400 | East |
| Unemployment Insurance | EUR 7,550 | EUR 90,600 | West |
| Unemployment Insurance | EUR 7,450 | EUR 89,400 | East |
| Health Insurance | EUR 5,512.50 | EUR 66,150 | Nationwide |
| Care Insurance | EUR 5,512.50 | EUR 66,150 | Nationwide |
Note: The compulsory insurance threshold (JAEG) for switching to private health insurance is EUR 73,800 annually in 2026 - not to be confused with the BBG.
Calculation Example
Comparison: Contributions at Different Income Levels
| Gross Income | Assessment Base (Pension) | Pension Contribution (18.6%) | Effective Rate |
|---|---|---|---|
| EUR 4,000/month | EUR 4,000 | EUR 744 | 18.6% |
| EUR 7,550/month | EUR 7,550 (= BBG) | EUR 1,404.30 | 18.6% |
| EUR 10,000/month | EUR 7,550 (capped) | EUR 1,404.30 | 14.04% |
| EUR 15,000/month | EUR 7,550 (capped) | EUR 1,404.30 | 9.36% |
Key insight: Those earning more than the BBG pay the same maximum contribution as someone at the BBG - the effective percentage decreases.
BBG vs. Compulsory Insurance Threshold (JAEG)
Contribution Assessment Ceiling (BBG)
- • Determines the maximum contribution
- • Income above is contribution-free
- • 2026: EUR 66,150 (health/care)
- • 2026: EUR 90,600 (pension/unemployment West)
- • Applies to all social insurance members
Compulsory Insurance Threshold (JAEG)
- • Determines right to choose private insurance
- • Only relevant for health insurance
- • 2026: EUR 73,800/year
- • Income 3 years above JAEG = private insurance possible
- • Also: Annual income threshold
Historical Development
| Year | BBG Pension (West) | BBG Health | Change |
|---|---|---|---|
| 2024 | EUR 90,600 | EUR 62,100 | - |
| 2025 | EUR 90,600 | EUR 64,350 | +3.6% |
| 2026 | EUR 90,600 | EUR 66,150 | +2.8% |
The BBG increases annually according to wage development. The values are set by the federal government by ordinance in the autumn of the previous year.
Frequently Asked Questions
What does contribution assessment ceiling mean?
The contribution assessment ceiling (BBG - Beitragsbemessungsgrenze) is the income cap up to which social insurance contributions are calculated. Income above this limit is contribution-free. In 2026, it is EUR 7,550/month for pension insurance (West Germany).
What is the contribution assessment ceiling in 2026?
Pension insurance West: EUR 7,550/month (EUR 90,600/year). Pension insurance East: EUR 7,450/month (EUR 89,400/year). Health/care insurance: EUR 5,512.50/month (EUR 66,150/year).
What is the difference to the compulsory insurance threshold?
The contribution assessment ceiling determines the maximum contribution. The compulsory insurance threshold (JAEG, 2026: EUR 73,800) determines when employees may choose private health insurance. Both are adjusted annually.
Who pays social insurance contributions above the ceiling?
Nobody. Income above the contribution assessment ceiling is exempt from social insurance contributions. This means: High earners pay a lower percentage of contributions than low earners.
Why are there different contribution assessment ceilings?
Higher limits apply for pension and unemployment insurance than for health and care insurance. Historically, there were also differences between West and East Germany, but these have been equalized by 2025.
Legal Notice
The contribution assessment ceilings are adjusted annually pursuant to § 159 and § 160 SGB VI as well as § 223 SGB V by statutory ordinance. The values for 2026 were set by the Social Insurance Calculation Values Ordinance 2026. Status: February 2026.