Workers in Germany are these days watching with disbelief the economic forecasts announcing a drastic increase in contributions for health and social insurance.

According to a renowned economist, soon even half of gross income could go to mandatory contributions, which is causing concern among employees and employers, writes Fenix Magazin.

Currently, around 42 percent of gross salary is allocated to social insurance, and experts warn that this percentage will only continue to rise. The economist points out that it is no longer a question of whether contributions will reach the threshold of 50 percent, but when that will happen. It is expected that already during this year the share of contributions will rise to 43 percent, and the main reason for this lies in the aging population and the ever-growing needs of the health and pension system.

A professor of social policy and public finance at Ruhr University Bochum predicts a new increase in contributions as early as 2026. Health insurance funds have already exceeded the average rate of 17 percent, and are now estimated to be at the level of 17.5 percent. At the same time, pension contributions, which had been stable for years at 18.6 percent, could jump to almost 20 percent by 2027 or at the latest 2028. In addition, an increase in long-term care contributions is also expected.

The economist emphasizes that deep reforms are urgently needed, because current measures such as raising the contribution assessment ceilings or including civil servants in the social insurance system are not sufficient.