What changes as of 1 January 2026
The 2025 Social Security Financing Act introduces, effective 2026, several changes to the general reduction of employer contributions, namely:
- the elimination of the reduction on employer health insurance contributions and family allowance contributions;
- the modification of the general reduction mechanism itself.
These changes are detailed in a decree dated 4 September 2025 and will apply to contributions and levies due for employment periods starting 1 January 2026.
| Reductions | Currently | As of 1 January 2026 |
| General reduction of employer contributions | Calculation formula: (Reduction rate / 0.6) × [(1.6 × €21,621.60 (annual gross minimum wage) / annual gross remuneration) – 1] | Calculation formula : T min + (T delta × [(1/2) × (3 × annual gross minimum wage / annual gross remuneration – 1)] P) |
| Reduction on employer health insurance contributions | 7% reduction (capped at 2.25 × minimum wage) | Abolished |
| Reduction on employer family allowance contributions | 3.45% reduction (capped at 3.3 × minimum wage) | Abolished |
