Bundestag Committee Recommends Adjusting Pflegeversicherung Contribution Rate in 2025
Berlin, December 4, 2024 – The Health Committee of the German Bundestag has recommended approving a government ordinance that would adjust the contribution rate for the social long-term care insurance (Pflegeversicherung) in 2025.
Increased Costs and Declining Reserves
The recommendation follows the government’s proposal to increase the contribution rate from the current 3.05% to 3.4% of gross income for employees and employers. The adjustment is necessary due to rising costs in long-term care and the declining reserves of the Pflegeversicherung fund.
Nursing Home Costs Driving Increase
The main factor driving the increase in costs is the rising demand for nursing home care, which has been exacerbated by an aging population. The number of people aged 80 and older is expected to increase by 40% in the next decade, leading to a substantial increase in the need for long-term care services.
Reserves Depleted
The Pflegeversicherung fund, which is financed by the contributions of employees and employers, has been facing a steady decline in its reserves. As of the end of 2023, the fund’s reserves had fallen below the legal minimum of 1.5 times the annual expenditure.
Impact on Contributors
The contribution rate increase would result in an additional monthly cost of approximately €10 for employees and employers with an average income. For people without a job, the contribution would increase by around €5 per month.
Government Measures
The government is also proposing a number of measures to improve the financial sustainability of the Pflegeversicherung, including:
- Increasing the income threshold for contribution payments
- Revising the calculation of care needs assessments
- Expanding the range of outpatient care services
Next Steps
The Bundestag’s full plenary session is expected to vote on the ordinance on December 14, 2024. If approved, the new contribution rate would come into effect on January 1, 2025.
The adjustment of the Pflegeversicherung contribution rate is a necessary measure to ensure the long-term viability of the system and the provision of quality long-term care services for all.
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Drucksachen a new article on 2024-12-04 11:00 titled “20/14053: Beschlussempfehlung und Bericht zu der Verordnung der Bundesregierung – 20/13710, 20/13813 Nr. 2.2 – Verordnung zur Anpassung des Beitragssatzes in der sozialen Pflegeversicherung 2025 (Pflege-Beitragssatz-Anpassungsverordnung 2025 – PBAV 2025) (PDF)”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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