German Cabinet Approves Maximum Income Basis for Social Security Contributions for 2021

On 14 October 2020, the German Federal Cabinet approved the maximum annual income basis for social security contributions for 2021. For pension and unemployment insurance, the maximum basis will be:

• EUR 85,200 for Western Federal States (old States); and
• EUR 80,400 for Eastern Federal States (new States).

For health insurance and nursing insurance for disability and old age, the maximum annual basis will be EUR 58,050 for all Federal States.

Pending final approval from the German Federal …