Compulsory insurance limit

Also known as: Annual earnings limit (JAEG)

The compulsory insurance limit is the upper limit from which an employed income earner is exempt from the obligation to be insured in a public health insurance company.

Above this threshold, those affected are free to continue to find protection in statutory health insurance or to take out private health insurance.

Definition / explanation

The annual wage limit, also known as the compulsory insurance limit, is a social insurance figure from Germany. The regulation of the compulsory insurance limit applies to workers, salaried employees and pensioners.

This group is obliged to be insured with a statutory health insurance company. If the annual income exceeds a threshold, there is an option to choose a private health insurance company. The compulsion to insure against medical expenses remains, however, the person concerned can only determine the type himself.


The compulsory insurance limit is equivalent to the annual income limit. The annual wage consists of the regular income (gross annual salary or 12 x gross monthly salary plus supplements).

The annual wage limit is linked to the development of gross wages and salaries and is set annually by the Federal Ministry of Labor and Social Affairs. For 2015, the general mark is EUR 54,900.


After the end of the calendar year in which the beneficiary has exceeded the threshold with his contributory income, he is free of insurance and has the choice to switch to a private health insurance company.


In addition to the general compulsory insurance limit, the special compulsory insurance limit was introduced in 2003. It applies to all beneficiaries who were already privately insured on December 31, 2002.

The special compulsory insurance limit is lower than the general one and is EUR 49,500 for 2015.


  • Compulsory insurance limit is the same as the annual income limit
  • Annual earnings consist of the gross annual salary
  • Regulation applies to all dependent income earners (blue-collar workers, salaried employees, pensioners)
  • when the threshold is exceeded, the beneficiary gains exemption from insurance
  • Freedom from insurance is the option to choose between public and private health insurance
  • The compulsory insurance limit is set annually by the Federal Ministry of Labor and Social Affairs
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