German Employee Benefits Update Q1 2026
The most significant changes to German employee benefits in Q1 2026 include increases to the minimum wage and to the child benefit/child supplement, as well as meal, housing, and transportation allowances. There are also updates to the marginal income threshold, contribution assessment ceiling, annual income limit, and additional contributions towards health insurance. All of this information is covered in the latest edition of Servus, Profions’ publication on employee benefits in Germany. Read the full newsletter
Minimum wage – the minimum wage will increase by 8.42% from 12.82 € to 13.90 € per hour.
Child benefit / child supplement – the non-means-tested child benefit will increase from 255 € to 259 € per month for each child.
New non-cash remuneration values – The value for free meals will increase to 345 € per month, and for free accommodation to 285 € per month.
Deutschland-Ticket as job ticket – distance-based-travel allowance will rise permanently to 0.38 € as of the first kilometer.
Marginal income threshold, contribution assessment ceiling, annual income limit, additional contribution, health insurance contribution
- For jobs subject to social security contributions, the contribution assessment ceiling for health and long-term care insurance will rise to 5,812.50 € per month / 69,750 € per year.
- The contribution assessment ceiling for pension and unemployment insurance will increase to 8,450 € per month / 101,400 € per year.
- The general annual income limit (JAEG) stands at 77,400 €. Above this threshold, statutory health insurance is no longer compulsory, and employees are free to choose between statutory health insurance (GKV) and private health insurance (PKV).
If you need support with your employee benefits in Germany, please contact Asinta, and we will put you in touch with the local experts at Profion.