The German Federal Cabinet today approved an increase of the annual pension insurance contribution ceiling (“Beitragsbemessungsgrenze in der allgemeinen Rentenversicherung”) from €96,600 to €101,400, effective 1 January 2026.
While this annual adjustment reflects general wage growth and maintains stability within the social security system, it will also raise the minimum salary thresholds for key immigration categories. The change will particularly affect the EU Blue Card, the residence permit for skilled workers aged 45 and above, and other categories tied to the pension insurance ceiling. Employers should now review affected cases to ensure continued compliance once the new thresholds take effect.
At its meeting on 8 October 2025, the Cabinet adopted the ordinance presented by Labour Minister Bärbel Bas (SPD) to raise the pension insurance ceiling to €101,400 per year. The measure will enter into force automatically on 1 January 2026.
The government is legally required to recalculate these figures annually based on national wage developments. This adjustment ensures that higher earners continue to contribute proportionally to the social security system, while preserving stable pension entitlements and avoiding a shift of costs toward lower income groups.
Because this ceiling serves as a reference value for several immigration categories, the increase will directly affect visa-related salary thresholds. The updated minimum annual gross salaries applicable from 2026 are as follows:
These new salary levels apply only to those visa and residence categories whose minimum salaries are calculated as a percentage of the annual pension insurance contribution ceiling. For the affected categories, the new figures will apply to applications submitted on or after 1 January 2026 (subject to any transitional guidance from the authorities).
Foreign nationals already holding residence titles tied to income thresholds—particularly EU Blue Card holders—must ensure that, as of 1 January 2026, their remuneration continues to meet the new minimum salary requirement. If the threshold is no longer met, the residence title automatically becomes invalid.
Employers have a corresponding duty to verify that foreign employees maintain a valid residence title. If an employee’s salary falls below the required level, the residence title expires by law, and continued employment could be considered a case of illegal employment under German regulations.
To prevent compliance risks, employers should review salary levels and employment contracts before year-end. Any necessary adjustments should be implemented in advance to maintain the validity of existing residence titles and ensure that planned visa applications meet the new requirements.
With the Cabinet’s approval, the increase is final, and no further legislative action is required. Implementation guidance from the Federal Employment Agency and immigration authorities is expected in the coming weeks.
Although this adjustment follows Germany’s regular annual review process, it may have wider implications for international hiring strategies. Early review and adjustment will help prevent interruptions in lawful employment and avoid administrative complications in the new year. Some employer associations have raised concerns that higher ceilings could increase overall labour costs and affect competitiveness, particularly for mid-sized companies and industries already facing talent shortages.
Vialto is closely monitoring the implementation of the new regulation and forthcoming administrative guidance from the Federal Employment Agency and the immigration authorities. We will continue to provide updates as further details become available.
In preparation for the 2026 changes, it will be important to review and, where necessary, recalculate salary offers to ensure compliance with the new thresholds. Employers should also verify that current residence title holders continue to meet the required salary levels, update employment and assignment documentation to reflect any adjustments, and coordinate closely with payroll and tax experts to ensure alignment across all related processes.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Mostafa Massoud
Partner
Inga Mayer
Senior Manager
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