A draft bill prepared by federal Health Minister Nina Warken would increase the share of taxes paid by adults without children toward publicly funded elder care. Childfree adults would contribute 2.5% of monthly income, rising by 0.7% over several years. Employers would be expected to contribute 1.8%. Adults with children would keep existing rates: 1.8% for one child, 1.55% for two children, and 1.3% for three or more children. The proposal would apply to all working full-time adults over age 23. The timing of cabinet submission remains unclear, despite an earlier plan to present elder care reform in mid-May. Germany faces demographic pressure from a long-stagnating birthrate and needs reforms to support older generations without overburdening younger people.
"Federal Health Minister Nina Warken has prepared a draft bill that would have adults without children pay a higher percentage of taxes towards publicly-funded elder care. The bill would have contributions from childfree adults increase by 0.7% over a period of years, meaning they would pay 2.5% of their income each month. Their employer will be expected to pay 1.8%."
"For adults with children the rates will remain the same: 1.8% for people with one child, 1.55% for people with two children, and 1.3% for people with three or more children. Under the proposal, all adults over the age of 23 who are working full-time would be affected."
"It is unclear when Warken, a member of Chancellor Friedrich Merz's center-right Christian Democrats (CDU), will submit the draft to the cabinet. Her ministry had originally said it would present a proposal for elder care reform in mid-May. With a long-stagnating birthrate mildly buoyed by immigration, Germany needs to act fast to make sure older generations can be taken care of without placing an undue burden on young people."
Read at www.dw.com
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