The annual earnings threshold (Jahresarbeitsentgeltgrenze) decides whether employees remain compulsorily insured in statutory health insurance (gesetzliche Krankenversicherung). The term comes up in salary talks, in letters from health insurers and in offers for private health insurance. This guide explains how the threshold works and how you can check it for yourself.
Short answer: The annual earnings threshold, also known as the compulsory insurance threshold, was EUR 77,400 a year in 2026, which is EUR 6,450 a month (as of January 2026, source: GKV-Spitzenverband). If you permanently earn above it as an employee, you are no longer compulsorily insured in statutory health insurance and can choose private or voluntary statutory cover. A draft with higher figures for 2027 exists (as of October 2026).
The most important points
- The threshold applies to workers and salaried employees. Self-employed people are not covered by it.
- For 2026 it is EUR 77,400 a year, or EUR 6,450 a month.
- What counts is your regular annual earnings. Family-related supplements are not included.
- When the threshold is exceeded, the obligation to be insured ends at the end of the calendar year, not immediately.
- If your earnings stay below the threshold of the following year, the obligation remains.
- The threshold also helps decide whether your employer pays a subsidy towards private or voluntary insurance.
How does the annual earnings threshold work?
The threshold is set out in § 6(1) no. 1 of the Social Code Book V (SGB V). It applies to workers and salaried employees whose regular annual earnings are above it. They are then exempt from compulsory insurance in statutory health insurance. Family-related supplements are disregarded in this check. The figures are adjusted every year on 1 January and set out in the Social Security Reference Values Ordinance (Sozialversicherungs-Rechengrößenverordnung).
Which values apply in 2026 and 2027?
| Year | Annual | Monthly | Status | Source |
|---|---|---|---|---|
| 2026 | EUR 77,400 | EUR 6,450 | Official, valid since 1 January 2026 | GKV-Spitzenverband, fact sheet on reference values |
| 2027 | EUR 84,150 | EUR 7,012.50 | Cabinet draft of 7 October 2026, not yet in force | BMAS, Social Security Reference Values Ordinance 2027 |
How do you check whether you reach the threshold?
Multiply your regular gross monthly salary by twelve. Whether special payments such as a Christmas bonus count depends on whether they are paid regularly. If in doubt, have the calculation confirmed by your employer or your health insurer.
Example (assumption): your regular salary is EUR 6,600 gross a month and there are no special payments. That makes EUR 79,200 a year. This is above the 2026 threshold (EUR 77,400). The obligation therefore ends at the end of the year, unless your earnings stay below the threshold of the following year. The planned threshold for 2027 is EUR 84,150, so in this example the obligation would continue.
What happens if you are above it?
You can then stay voluntarily insured in statutory health insurance or take out private health insurance. With private insurance, your employer may pay a subsidy under certain conditions. The amount depends on your contributions and on the employer share.
Frequently asked questions
Does the threshold also apply to self-employed people?
No. The rule applies to workers and salaried employees. Self-employed people follow their own insurance rules, which are independent of the annual earnings threshold.
What is the difference between the annual earnings threshold and the contribution assessment ceiling?
The annual earnings threshold decides whether you are compulsorily insured in statutory health insurance at all. The contribution assessment ceiling (Beitragsbemessungsgrenze) determines the amount up to which contributions are calculated. Both limits have different values and different effects.
Do I have to apply for anything myself if the threshold is exceeded?
The end of compulsory insurance happens by law. It is still worth clarifying contribution questions early with your health insurer and your employer, so that the change does not catch you unprepared.
Does the threshold also apply to part-time work?
The threshold is an annual figure. With part-time work your annual earnings are correspondingly lower, so you reach it less often.
What should you do now?
- Note your regular gross monthly salary and multiply it by twelve.
- Compare the result with the threshold for the current year and with the threshold for the following year.
- Have special payments checked by your employer or your health insurer before you make any decisions.
- Clarify the effects on contributions and on the employer subsidy before you change your type of insurance.
Related reading
- Career Start After University: Your Guide to the First Job
- Switching to Private Health Insurance at Career Start
- PKV or GKV as a Student: Which Option Fits Your Situation
- Avoiding the Biggest Mistakes at Career Start: Tips for You (in German)
Sources: GKV-Spitzenverband, fact sheet on reference values 2026, as of 1 January 2026; § 6 SGB V, gesetze-im-internet.de (accessed 26 October 2026); BMAS, Social Security Reference Values Ordinance 2027, draft (as of October 2026).
Last updated: October 2026. This guide is general information and not individual advice.
