What Is the German Federal Government Planning?
The starting point is the reform package titled, “Program for Growth and Employment,” adopted on July 2, 2026 by the German Coalition Committee of the CDU/CSU (conservative political party union) and SPD (social democratic political party). The package contains 34 measures. One of them concerns so-called high earners:
“For high earners, we will introduce a provision on January 1, 2027 – similar to the risk-bearer provision in the financial sector – that allows for the dissolution of the employment relationship with an option for severance pay for annual incomes above 1.75 times the contribution assessment ceiling for the statutory pension insurance system.”
Based on the 2026 contribution assessment ceiling for the statutory pension insurance system of EUR 101,400, the current threshold for high earners would be EUR 177,450 gross per year, or approximately EUR 14,788 gross per month. This would affect only a very small group of employees, well below one percent of of employees.
A key practical point: the threshold is tied to the contribution assessment ceiling, which is adjusted...
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