Artists’ Social Insurance
Contribution Rate Drops to 4.9% in 2026
The German Federal Ministry of Labour and Social Affairs has announced that the contribution rate to the Artists’ Social Insurance Scheme will be reduced from 5.0% to 4.9%, effective January 1, 2026. This is welcome news for businesses that commission freelance artists and journalists.
Why is the rate decreasing?
Despite overall economic challenges, the arts and culture sector in Germany has performed better than anticipated in recent years. This has resulted in increased payments to freelance creatives and a stronger financial base for the scheme, allowing for a modest reduction in the contribution rate.
What is the Artists’ Social Insurance Scheme?
This is a unique German social security system that provides over 190,000 self-employed artists and journalists with coverage for health insurance, pension, and long-term care insurance, similar to the coverage of employed workers.
How is it funded?
Funding comes from three sources:
- Artists pay 50% of their contributions themselves.
- The federal government provides a 20% subsidy.
- Businesses that use artistic or journalistic services pay 30% through a levy known as the Artists’ Social Insurance Contribution.
What does this mean for businesses?
Companies, agencies, publishers, and other organizations that pay freelance creatives are required to pay this levy. The reduction of the contribution rate to 4.9% will slightly ease their financial burden.
If you have further questions, our accountants will be happy to provide you with personal advisory. Additionally, we are available to advise you throughout France and Germany by phone and video conference. Your Franco-German tax consultancy FRADECO.
Disclaimer
Although the greatest possible care has been taken in the preparation of this newsletter, we reserve the right to make changes, errors, and omissions. The abstract legal presentation in this newsletter is no substitute for individual civil and tax law advice on a case-by-case basis. Subsequent changes to the legal framework, the views of the German or French tax authorities or case law, including with retrospective effect, are possible.
