Asset Publisher

Adobe Stock / Fokussiert

Facts and Findings

More "Net from Gross"

Relief through an allowance in statutory health insurance

In light of demographic changes that inevitably increase pressure on our social security system, an unstoppable rise in social insurance contributions looms unless decisively counteracted with reforms. Especially low-income households, which already bear a disproportionately high financial burden relative to their income, are under this strain. Consequently, there is a need for targeted relief for these households directly within the framework of social insurances, rather than through tax deductions. An allowance in statutory health insurance could significantly reduce the burden for employees subject to social insurance. To keep the costs of the reform manageable, it seems sensible to grant allowances only to a precisely defined target group.

Asset Publisher

Demographic change is increasing pressure on the social security system, leading to rising social insurance contributions without reforms. This particularly burdens low-income households, which already have to make high contributions in relative terms.

Since tax reliefs primarily benefit the middle class, low-income households should be relieved within the framework of social security contributions. According to model calculations, a general allowance leads to a significant reduction in the contribution burden.

However, such a measure is costly and could potentially have a counterproductive effect in the long term due to lower payments into the statutory pension insurance. A more promising approach is an allowance on contributions to statutory health insurance, as the financial burden is relatively high, but the principle of equivalence is not violated. To keep the costs of an allowance manageable, it seems sensible to grant allowances only to a targeted, clearly defined group.

Read the Analyses & Arguments: "More 'Net from Gross' – Relief through an Allowance in Statutory Health Insurance" here as a PDF.

Asset Publisher


Dr. Felicitas Schikora

Felicitas Schikora

Labor Market and Social Policy +49 30 26996-3631
Adobe Stock / Fokussiert
November 8, 2023
read now


Asset Publisher

About this series

The series informs in a concentrated form about important positions of the Konrad-Adenauer-Stiftung on current topics. The individual issues present key findings and recommendations, offer brief analyses, explain the Foundation's further plans and name KAS contact persons.


Dr. Kristin Wesemann


Head of Strategy and Planning +49 30 26996-3803

Sophie Steybe

Referentin Publikationen +49 30 26996-3726