What online retailers need to know as employers in 2026

We wish you all a healthy and successful new year!

After sharing valuable tax tips with you at the end of the year, we're continuing right into the new year. Here you can find out what's important for employers in 2026 when it comes to minimum wage, mini-jobs and social insurance.

New limits for minimum wage and mini-jobbers

The general statutory minimum wage of 13.90 euros gross per working hour has been in force since January 1, 2026. The exceptions for certain groups of people, such as young people under the age of 18, trainees, certain interns and volunteers, remain unaffected. Sector-specific collective agreements may also contain exceptions and provide for higher remuneration.

The so-called low income threshold (colloquially known as a mini-job) has been dynamic since October 1, 2022 and increases automatically with every adjustment to the statutory minimum wage. From January 2026, the regular monthly pay may not exceed 603 euros on average over a year. Based on a continuous employment period of at least 12 months, the maximum remuneration is EUR 7,236.

Occasional or unforeseeable exceeding of the marginal earnings threshold is permitted in a maximum of two calendar months within a given year and does not trigger an insurance obligation. However, an unforeseeable payment together with the current remuneration for the calendar month may not exceed twice the marginal earnings threshold. Employers can benefit from this and better compensate for seasonal fluctuations in annual business.

Changes to social insurance

As is the case every year, the income thresholds and the compulsory insurance threshold as well as the reference value will also change in 2026. This is relevant for employers, as it may result in changes to payroll accounting.

The contribution assessment ceiling in social insurance marks the maximum gross income up to which contributions are levied in statutory health and long-term care insurance. The limits are adjusted annually in line with income trends. This ensures that social security remains stable. In 2026, the limit will be €69,750 compared to €66,150 in 2025.

There is also a contribution assessment ceiling for pension insurance. In 2026, this will be 101,400 euros nationwide (96,600 euros in 2025). Further income above this amount remains non-contributory.

Another relevant factor in social insurance is the compulsory insurance limit. This is the maximum amount of income up to which employees must be compulsorily insured in the statutory health insurance scheme (GKV). If you earn more, you have the choice of remaining in statutory health insurance or switching to private health insurance (PKV). In 2026, the income threshold will rise to 77,400 euros compared to 73,800 euros in 2025.

The reference value will also increase in 2026 and amount to €47,460 (in 2025 it was €44,940). Among other things, it is the basis for determining the minimum contribution for voluntary members of statutory health insurance and is important for calculating contributions for self-employed persons subject to compulsory insurance in statutory pension insurance. The reference figure is based on the average salary of all pensioners in the previous year - i.e. 2024 for 2026.

Why the annual adjustment is necessary

Without adjusting the income thresholds and the compulsory insurance threshold, the contribution of top earners to the financing of social insurance would become ever smaller. The costs of social security would gradually shift more to lower incomes. At the same time, the level of protection for higher earners would fall. They would receive lower pension entitlements despite rising wages. This is because no contributions are paid for income above the assessment threshold and therefore no pension entitlements are acquired.

In order to avoid this development and thus keep social security stable, the calculation values are adjusted to the development of income every year.

Contributions to pension, unemployment and health insurance

In 2026, the contribution rates for pension insurance (18.6 percent of gross income), unemployment insurance (2.6 percent) and health insurance (14.6 percent) will remain unchanged.

The average supplementary contribution rate for statutory health insurance will increase to 2.9%. However, the individual supplementary contribution rate depends on the health insurance fund chosen. Employers must take this into account according to the employee's health insurance fund.

All contributions to pension, unemployment and health insurance are borne equally by employers and employees.

Contributions to long-term care insurance

The contribution to long-term care insurance does not change either, but the contribution is more individual than for the other social security contributions. We explain the special features.

Parents with one child (regardless of the child's age) pay 3.6 percent. For parents with at least two children under the age of 25, a contribution discount is taken into account. This is 0.25 percent from the second to the fifth child, i.e. a maximum of 1.0 percent for five or more children. When a child reaches the age of 25, the contribution discount is determined by the number of remaining children under the age of 25.

Those without children will continue to pay a surcharge of 0.6 percent, i.e. a total of 4.2 percent. The German Pension Insurance has developed a Chart which explains the different contribution rates in an understandable way.

In principle, the employer's share is 1.8 percent (except in Saxony, where it is 1.3 percent). The difference to the individual total contribution is borne by the employees. It is important for employers to record and maintain their personnel data correctly to ensure that payroll accounting is correct.

Contributions to private health and long-term care insurance are reported digitally

From 2026, the procedure for taking contributions to private compulsory health and long-term care insurance into account when deducting income tax has changed. Employees are now spared the inconvenience of submitting paper certificates. The private insurance companies will report the corresponding monthly amounts directly to the Federal Central Tax Office and employers will retrieve the data via the ELStAM procedure.

Policyholders have the right to object to this electronic transmission for the future. However, the contributions will then no longer be tax-free and more income tax will be withheld each month. A correction is then only possible as part of the income tax return. In addition, this may result in further social security contributions for which there is no refund procedure.

Note:
Paper documents can only be used in certain exceptional technical cases. However, not if employees voluntarily object to electronic transmission.

More flexibility in pension insurance for mini-jobs

Mini-jobbers are generally subject to pension insurance and pay a personal contribution of 3.6% of their salary to the pension insurance fund. They could apply for exemption from the pension insurance obligation. However, this decision could not be revoked. There will be more flexibility from July 2026.

If mini-jobbers have been exempted from the pension insurance obligation in the past, they may revoke this decision at any time. unique revoke the exemption. The application to revoke the exemption must be submitted to the employer in writing or electronically. The revocation applies to all marginal employment performed by employees. It applies from the month following the application, unless the collection agency objects within one month.

Attention:
A renewed exemption from the pension insurance obligation is then no longer possible for the same employment relationship.

Benefits for electromobility

Employers who also provide their employees with a company vehicle for private use have had to comply with an innovation since July 2025. For purely electric and fuel cell vehicles purchased between 2019 and the end of 2030, only a quarter of the gross list price is to be used to calculate the non-cash benefit in payroll accounting. The previous list price limit of 70,000 euros was raised to 100,000 euros in July 2025 in order to further promote electromobility.

There are also changes to be considered for charging electricity for electric company cars. If employees charge their company car at home themselves, employers were able to reimburse monthly flat rates of between 15 and 70 euros until the end of 2025. This is no longer possible. From 2026, the reimbursement of expenses will be based on the charging current actually used. The electricity consumption of the electric company car must be recorded via a wallbox or socket with a separate meter. The tax-free reimbursement of expenses is calculated either via the actual electricity price or via a flat-rate electricity price based on an average price.

Employers must therefore promptly change their payroll accounting and, if necessary, adjust agreements with employees.