German pension tickets and health insurance: What the flat rate cut means for you

Just weeks after the federal government agreed on key points Federal Budget 2025Since 2011, calls for further austerity measures have been growing louder. The background is that the financing gap is estimated at 300 to 500 million euros.

The federal government itself and the federal Ministry of Finance have not yet confirmed this amount. Fructose polysaccharideChristoph Meyer is now pursuing a more radical option to close the possible financing gap. He also did not give an exact figure; he called for budget cuts in all ministries. “A blanket reduction of 1.5% in all departments is a possible solution that can be discussed,” Meyer told Bild. Instead, it means: Germany must save 1.5% everywhere.

Meyer went on to say that there are options to eliminate the need for financial action. The goal is “a budget that complies with the constitution, because the fundamental law must be followed.”

What are the consequences of across-the-board cuts?

Basically: Traffic lights federal government has Key points about the 2025 federal budget and agree on an economic stimulus package. The aim is not only to reduce the burden on taxpayers through individual measures, but also to motivate employees to work longer. It is also an attempt … To address the urgent shortage of skilled workers. In addition, the long-term unemployed should receive their wages faster Reintegration into the labour market Investment plans can stimulate a weak economy.

An additional across-the-board cut of 1.5% would affect many German citizens in many ways. And such regulation is not feasible everywhere. An exception is the defense budget, for example, which will consume around 51.8 billion euros by 2024. Clearly, concessions have been made here that an increase in the budget is necessary.

But where would the federal government get the money? save? FOCUS online gives the simplest example.

Germany airfare – either quit completely or pay more

In particular, the German ticket in its current form is at risk: the Federal Ministry of Transport, which is already under pressure to save, must secure its financing. As investments in road construction, rail transport and digitalization are planned simultaneously, the German ticket appears to be the easiest target for savings.

Legally, the price increase is possible. Because according to the regionalization law, the federal government pays 1.5 billion euros per year for German tickets – just like the states. They made it clear at the transport conference in April that they supported continued payments, but the final decision remains in the hands of the federal government.

In recent months, the debate over the allocation of costs has raged. This spring, Germany has a funding gap of 350 million euros for tickets. “The sales prices of tickets in Germany are regularly checked,” said a key decision of a summit of transport ministers of the federal states. By 2025, the federal government should Contribution of nearly 1.5 billion euros if the price should remain at 49 euros. The remaining 1.5 billion comes from the cities. If air tickets become more expensive, this amount may decrease. Families may have to prepare for a rise to 59 euros or even 69 euros.

Meanwhile, it seems unlikely that German tickets will disappear completely.

Higher medical costs for employees

The Federal Ministry of Health already has to save around 33.7% of the federal budget for 2024. A further cut of 1.5% would mean that at least 243 million euros in additional health expenditures would have to be saved in 2025. At least because only the budget for 2024 is known – specifically, 16.2 billion euros. The exact target for the federal budget for 2025 remains unclear, because the exact savings target for the health sector is known only to the federal government.

The Federal Ministry of Health is already implementing cost-cutting measures, which have also led to the closure of clinics and hospitals. However, the ministry also needs a financial buffer to deal with this. Therefore, the overall reduction can be cushioned by additional revenue.

Employees may therefore have to expect an increase in contributions. Interestingly, the outlines of the 2025 budget do not explicitly exclude such a measure. Preliminary calculations already indicate that by 2035 the total contributions of the various insurance sectors could reach An increase of 7.5 percentage points to 48.6%. At least this is the result of calculations carried out by the IGES institute in Berlin on behalf of DAK-Gesundheit.

This is not an isolated case.

Will pension contributions be higher from 2025?

With the approval of Pension Plan II, the extended holding line has been reduced. Previously, the contribution rate was limited to 20%. Therefore, the government is clearing the way for an increase in contributions. So far, employees and employers have to pay a total of 18.6% to the pension fund.

To ensure the financing of future pensions, the government initially wanted to use pension insurance reserves and higher contributions. The contribution rate should remain stable at 18.6% by 2027. It should! There are no guarantees about this. It has been decided to increase it to 20% from 2028. A further increase to 22.3% is planned from 2035.

What explains the increase in premiums? The Federal Ministry of Labor and Social Affairs has expenditures of around 171.7 billion euros in 2024. The proposed across-the-board rate cut of 1.5% would mean savings of 2.67 billion euros. Increases in pension contributions and other social security contributions could cushion these savings.

• Calculation example: The average gross wage is €45,358, of which about €703 goes into pension insurance each month through employees and employers. If the contribution were increased to 20%, the wage would be €755. Calculated for the whole year, this figure increases by €624.

These figures are preliminary estimates and may be adjusted based on future developments.

Cinemas, theaters, concerts and museums will become more expensive

During the negotiations, the Federal Ministry of Finance has proposed to abolish the reduced tax rates for cultural products. Green Party Obviously, the proposal was rejected outright. The comprehensive cuts to the Federal Ministry of Education and Research are likely to hit the cultural industry, artists and consumers the hardest. In addition to cuts to cultural funding, the reduced tax rate may also be put to the test. What does this mean? The federal government has agreed to more research and education to enhance Germany’s competitiveness.

Similar to the cancellation of the food tax deduction for the restaurant industry at the beginning of the year, the cancellation of the tax deduction will directly affect the prices of cinemas, theaters, concerts and museums. At the stadium, tickets will no longer be charged 19%, but 7%.