Economic Experts Warn of Rising Social Contributions in Germany
Daily Monitor
May 28, 2026
Economic Experts Warn of Rising Social Contributions in Germany
In their Spring Report 2026, the German Council of Economic Experts cautions that social contributions may rise to 50% by 2040, potentially hindering economic growth.
The Council, comprising economists Werding, Truger, Felbermayr, Grimm, and Schnitzer, presented their findings to Chancellor Friedrich Merz (CDU) in Berlin. They emphasize that the projected increase from the current 42% could impose significant burdens on both businesses and employees, necessitating urgent reforms to the social welfare system to mitigate adverse economic impacts.
For journalistic integrity, this report was summarized from: handelsblatt.com