Germany Long-Term Care Insurance 2025: Contribution Changes Explained
Germany Long-Term Care Insurance (Pflegeversicherung) 2025
Germany rebalances Pflegeversicherung contributions in 2025 to stabilise long-term care financing and reward families with multiple children. Employers and employees must update payroll settings to reflect the new rates and child-based discounts.
Contribution Rates
- Standard rate: 3.7% of gross salary (split 1.85% employee / 1.85% employer).
- Childless surcharge (>23 years): +0.35% employee share.
- Child-based reductions: Additional -0.25% per child (capped) for employees, applied automatically via ELStAM once registered.
Payroll Example
An employee earning €4,000 gross with two children pays 1.35%, saving €20 monthly versus the childless rate. Employers should cross-check ELStAM data and request birth certificates to ensure accurate reductions.
Employer Compliance Tasks
- Verify contribution settings in payroll software by state (Saxony retains different splits).
- Communicate rate changes to staff, highlighting child-based savings.
- For expatriates, evaluate private long-term care insurance alternatives if exempt.
- Budget for higher employer costs in financial forecasts.
Employee Planning Tips
Incorporate the adjusted deductions into net salary forecasts, especially when negotiating salary increases. Couples should update ELStAM records promptly after childbirth to claim the contribution discount and adjust monthly cash flow accordingly.
Additional Considerations
Retirees and voluntarily insured individuals should reassess private long-term care insurance contracts to ensure coverage keeps pace with rising care costs. Employers offering supplementary Pflege-Bahr contracts can position them as part of a holistic benefits package, especially valuable in healthcare, elder care, and public sector roles.
FAQs
How do I prove eligibility for child-based reductions? Ensure children are registered in the civil registry and that ELStAM entries include child status. Payroll updates typically propagate automatically, but double-check payslips after January 2025.
Are part-time employees entitled to the same reductions? Yes, the percentage reduction applies proportionally regardless of working hours.
Next Steps: Use our calculator to simulate 2025 net pay with new Pflegeversicherung rates, and align company budgets with the expected employer share. Schedule internal audits mid-year to verify correct application of child-related discounts and avoid compliance issues.