Due to reform of statutory nursing care insurance, contribution rate increases as of July 1, 2023
- 06/27/2023
- Reading time 4 Minutes
On June 16, 2023, the German Bundesrat has adopted the German Nursing Care Support and Relief Act (Pflegeunterstützungs- und Entlastungsgesetz; “PUEG”). It provides for improved benefits for people in need of care and their relatives as well as a stabilization of the social nursing care insurance system’s financial situation. As a result, however, statutory contribution rates will rise.
In addition, the Nursing Care Support and Relief Act is intended to improve working conditions for professional caregivers and strengthen digitalization in long-term care. In order to finance the adjusted benefits, which are planned for January 1, 2024 (care allowance and outpatient benefits in kind) and January 1, 2025 (dynamization of benefits in kind and cash benefits), the contribution rate to care insurance is to be adjusted as of July 1, 2023.
Which contribution rate will apply from July 1, 2023?
For all persons insured under the statutory nursing care insurance scheme, the contribution rate is to rise by 0.35 % to 3.4 % from July 2023.
What is the additional contribution rate for childless insured persons?
The additional contribution rate for childless insured persons will be raised from 0.35 to 0.6 %. Thus, the contribution rate to nursing care insurance for childless persons will be 4 % as of July.
In the future, the number of children will be taken into account in the applicable contribution rate
Due to a decision by the German Federal Constitutional Court of April 7, 2022, the nursing care insurance contribution rate for families with several children will decrease.
As of July 2023, parents will generally pay a 0.6 % lower contribution rate to nursing care insurance than childless persons, i.e., 3.4 %. For parents with several children under the age of 25, the contribution rate will also be reduced by a discount of 0.25 % per child from the second to the fifth child. This deduction takes into account the economic cost of raising children, which is usually incurred during this period. After such period, the deduction no longer applies.
From July 2023, the following contribution rates must be taken into account:
Contribution for | Total contribution | Employees | Employers |
Childless members | 4.00% | 2.30% | 1.7% |
Parents with 1 child | 3.40% | 1.70% | 1.7% |
Parents with 2 children | 3.15% | 1.45% | 1.7% |
Parents with 3 children | 2.90% | 1.20% | 1.7% |
Parents with 4 children* | 2.65% | 0.95% | 1.7% |
Parents with 5 and more children* | 2.40% | 0.70% | 1.7% |
* Until the child reaches the age of 25
Note: Employers in Saxony pay a contribution of 1.20 %. The respective difference of 0.50 percentage points is additionally borne by employees in Saxony (for example, employee contribution for childless persons 2.80%, for parents with one child 2.20%).
To whom must the number of children be reported?
In order for the deductions to be taken into account, the number of children under the age of 25 must be verified to the contributions’ payor. In the case of employees subject to statutory health and nursing care insurance, this means providing evidence to the employer, unless the information is already known to the employer.
What are employers’ obligations in this regard?
As an employer, you should now ask your employees to inform you of the number of children under the age of 25 and request the relevant evidence if you do not already have this information.
Digital process from July 1, 2025
In order to relieve all parties involved of the associated administrative burden, it is planned to develop a digital procedure for collecting and verifying the number of eligible children by March 31, 2025. This is intended to make the data on eligible children available in digital form to the contributions’ payors – such as employers – and to the nursing care insurance funds.
Does the new regulation affect people with private health and nursing care insurance?
No, persons with private health and nursing care insurance are exempt from the adjusted contribution rates for nursing care insurance. There will be an adjustment to the employer’s (maximum) contribution to private nursing care insurance when the PUEG comes into force.
If you have any questions about the reform of the statutory long-term care insurance system, please contact our experts Andreas Bode, Christian Eisele, Felix Hermsdorf, Simone Kriegel, Sabine Sailer and Ulrike Thomas.
