Health insurance contribution 2025: optimise costs and calculate correctly
20.06.25
4
Minutes
Katrin Straub
Managing Director at nextsure
Health insurance contributions are a key cost factor for employees and self-employed people. Understand the calculation basis for 2025 and discover how you can optimise your burden. This article guides you through all the relevant aspects.
The topic in brief and concise terms
The general contribution rate for statutory health insurance (GKV) is 14.6 per cent of gross income, plus an additional contribution set by the individual health insurer.
The contribution assessment ceiling for health and long-term care insurance is €5,512.50 per month in 2025; income above this is exempt from contributions.
The average additional contribution rate is estimated at 2.5 per cent for 2025, but it can vary depending on the health insurance fund.
Health insurance contribution: understanding the basics
The contribution to health insurance secures your medical care in Germany. It is calculated as a percentage of your income, up to the so-called contribution assessment ceiling. For 2025, this ceiling is €66,150 per year or €5,512.50 per month. The standard contribution rate is 14.6 per cent. In addition, there is an extra contribution specific to each fund. This system forms the basis for financing the healthcare system and is regulated in the Social Code, Book V (SGB V). A precise understanding of these fundamentals is the first step towards optimising your contributions.
Contribution amount 2025: Key figures and changes
The year 2025 brings some important adjustments to the figures for health insurance contributions. The contribution assessment ceiling (BBG KV) rises to 5,512.50 euros per month. Income above this limit is no longer taken into account when calculating contributions. The average additional contribution charged by health insurance funds is forecast at 2.5 per cent for 2025. The fund-specific additional contributions can, however, vary; for 2025 they range between 2.18 per cent and 4.4 per cent. Employees and employers each share the standard contribution and the additional contribution equally. These changes can alter your monthly burden by as much as several dozen euros.
Compulsory insurance threshold and its significance
In addition to the contribution assessment ceiling, the annual earnings threshold (JAEG), also known as the compulsory insurance threshold, is crucial. It rises in 2025 to 73,800 euros per year (6,150 euros per month). Employees whose regular annual salary exceeds this threshold are no longer subject to compulsory insurance in the statutory health insurance system (GKV). They can then switch to private health insurance (PKV) or opt for voluntary statutory insurance. This decision has far-reaching consequences for costs and benefits.
Contribution calculation for employees: A practical example
For employees, the health insurance contribution is made up of the general contribution rate of 14.6 per cent and the insurer-specific additional contribution. Both parts are applied to gross salary up to the contribution assessment ceiling of EUR 5,512.50 (as of 2025). Employer and employee share these costs equally. Let us take a gross salary of EUR 4,000 and an average additional contribution of 2.5 per cent. The total contribution rate would be 14.6 per cent + 2.5 per cent = 17.1 per cent. Of this, the employee pays 8.55 per cent, i.e. EUR 342. The employer also pays EUR 342. For income above the BBG, for example EUR 6,000, the contribution is calculated only up to EUR 5,512.50. The maximum contribution for employees without children (including long-term care insurance at 4.2 per cent and an average additional contribution of 2.5 per cent) in 2025 is around EUR 1,174.16, of which the employee bears roughly half. A precise calculation is essential for household budgeting.
Contributions for the self-employed: Note special regulations
Self-employed people usually pay their health insurance contributions in full themselves. The basis for calculation is earned income, with all types of income taken into account. For self-employed people whose main occupation is self-employment, a minimum assessment basis of 1,248.33 euros applies in 2025. Even with lower earnings, the contribution is calculated on the basis of this notional minimum income. The minimum contribution to statutory health insurance (including the average additional contribution and long-term care insurance) is around 258 euros for self-employed people in 2025. The upper limit for contribution calculation here is also the contribution assessment ceiling of 5,512.50 euros per month. Self-employed people can choose between the standard contribution rate (14.6 per cent plus additional contribution) with entitlement to sickness benefit, or the reduced rate (14.0 per cent plus additional contribution) without entitlement to sickness benefit. A careful consideration is advisable here.
The following points are relevant for self-employed people when assessing contributions:
All types of income are taken into account (e.g. also from renting and leasing).
Proof of income is usually provided via the income tax assessment notice.
Advance payments are often set on the basis of an estimate and later adjusted.
If the standard contribution rate is chosen, there is entitlement to sickness benefit from the seventh week.
The additional contribution of the respective health insurance provider is always added.
Long-term care insurance is charged additionally; the rate varies depending on the number of children.
The complexity of contribution calculation for self-employed people requires a careful review of the individual situation.
Expert knowledge: Legal foundations and tax aspects
The legal basis for health insurance contributions is primarily found in Book Five of the German Social Code (SGB V). For example, Section 241 sets out the general contribution rate and Section 242 the rules on the individual additional contribution set by each health insurance fund. The annual adjustment of the contribution assessment ceiling is made via the Social Insurance Calculation Values Ordinance. An important aspect is the tax deductibility of health insurance contributions. Contributions to basic cover in statutory and private health insurance can be claimed as special expenses. This includes the general contribution rate and the additional contribution. For other pension and insurance expenses, there is a maximum amount of EUR 1,900 for employees and civil servants, or EUR 2,800 for self-employed people who pay their contributions in full themselves. In many cases, contributions to basic health insurance and long-term care insurance already use up this maximum amount. Providing precise details in your tax return can reduce your tax burden.
Our expert tip: Check every year whether your health insurance fund has increased the additional contribution. If it has, you have a special right to cancel and can switch to a cheaper fund. Over the course of a year, this can mean savings of several hundred euros.
Optimisation potential: lower contributions and improve benefits
There are various approaches to optimising your health insurance contribution. Switching statutory health insurer can be worthwhile if your current insurer charges a high supplementary contribution. Compare the contribution rates and benefits of different providers. For high earners and self-employed people, switching to private health insurance (PKV) may be an option in some circumstances, especially if GKV contributions reach the maximum contribution. However, comprehensive advice is essential here, as PKV contributions are not income-dependent and may rise in later life. Another option within statutory health insurance (GKV) is optional tariffs, for example with an excess or for certain benefits, which can lead to a reduction in contributions. Checking supplementary insurance may also be worthwhile in order to close gaps in GKV benefits without switching systems directly. An annual review of your insurance situation can save you up to several hundred euros.
Options for optimising contributions include:
Regular comparison of health insurers' supplementary contributions.
Exercising your special right of cancellation when contributions increase.
Checking whether a switch to private health insurance is possible for those eligible (observe JAEG).
Choosing tariffs with an excess in GKV or PKV.
For the self-employed: correct classification of income and selecting the appropriate contribution rate (with/without sickness benefit).
Reviewing the necessity and cost of private supplementary insurance.
Being proactive about your health insurance contribution often pays off.
The subject of health insurance contributions is multifaceted and depends on individual factors. Whether you are insured under the statutory or private system, as an employee or self-employed person – a solid understanding of the current regulations for 2025 and strategic planning are crucial. nextsure supports you as a digital insurance portal in keeping track and finding the solutions that are right for you. We help you to navigate the complexity and optimise your cover. Benefit from our expertise for your health and finances.
Request your personalised risk analysis now: Have your insurance situation reviewed free of charge and receive concrete suggestions for optimisation.
More useful links
The Federal Ministry of Health provides official information on health insurance contributions.
Statista provides detailed statistics on the development of contribution rates in statutory health insurance.
The National Association of Statutory Health Insurance Funds (GKV-Spitzenverband) provides current figures and charts on statutory health insurance.
The Association of Substitute Health Insurance Funds (vdek) provides current data on insured persons in statutory health insurance.
The Federal Statistical Office (Destatis) provides information on health insurance coverage in Germany.
The Techniker Health Insurance (TK) provides an overview of current contribution rates in social insurance.
The German Pension Insurance provides comprehensive information on health and long-term care insurance for pensioners.
The Consumer Advice Centre provides important information on voluntary insurance in statutory health insurance.
FAQ
How is the contribution to statutory health insurance calculated?
It consists of the general contribution rate (14.6 per cent) and the fund-specific additional contribution. Both are levied on gross income up to the contribution assessment ceiling. Employers and employees share the contributions equally.
What does the annual earnings threshold (JAEG) mean?
The JAEG (2025: €73,800 per year) is the income threshold up to which employees are compulsorily insured in the GKV. If salary is above this, a switch to the PKV or voluntary GKV membership is possible.
What is the minimum contribution for self-employed people in statutory health insurance in 2025?
The minimum contribution is based on a minimum assessment basis of 1,248.33 euros (2025). Including the average additional contribution and long-term care insurance (for childless people), this results in a monthly minimum contribution of around 258 euros.
What is the difference between the general and reduced contribution rate for self-employed people?
The standard contribution rate (14.6 per cent + additional contribution) includes entitlement to sickness benefit. The reduced contribution rate (14.0 per cent + additional contribution) does not include entitlement to sickness benefit.
Do premium increases affect my right to cancel?
Yes, if your health insurance fund increases the supplementary contribution, you have a special right of cancellation and can switch to another health insurance fund.
Where do I enter my health insurance contributions in my tax return?
Contributions to basic health and long-term care insurance are entered in the Vorsorgeaufwand section of your tax return.
