German Government Approves 0.2% Increase in Care Insurance Contributions for 2025

The rise aims to maintain financial stability amid an unfinished reform due to the collapse of the coalition.

The increase in care insurance contributions will take effect on January 1, 2025, pending Bundesrat approval.
The contribution for childless individuals will rise to 4.2%, while those with one child will see rates of 3.4%.
The measure is designed as a temporary solution to ensure the care insurance's financial viability until a comprehensive reform is enacted.
A planned care reform was halted following the breakup of the coalition, highlighting the urgent need for sustainable solutions.
The government previously raised contributions in July 2023, with the latest increase intended to address a projected shortfall of 4.9 billion euros.