SSA to Announce 2.7% COLA Increase, Higher Contribution Ceilings for 2026
The Social Security Administration (SSA) is set to unveil significant changes to the Social Security program on October 15. Among the updates, recipients can anticipate a 2.7% cost-of-living adjustment (COLA) for 2026, a slight uptick from the previous year's 2.5%.
The SSA will also adjust income thresholds for social insurance contributions. The annual contribution assessment ceiling for health and long-term care insurance will rise from €66,150 to €69,750, while for pension and unemployment insurance, it will increase from €96,600 to €101,400. Monthly contribution ceilings will also increase, with health and care insurance rising from €5,512.50 to €5,812.50, and pension and unemployment insurance from €8,050 to €8,450. The income limit for marginal employment is expected to reach €603 monthly, and the tax-free income limit for family insurance will be about €565 per month.
The SSA will reveal the new earnings-test limit for those who work while collecting Social Security before full retirement age. Additionally, the new wage cap for Social Security taxes in 2026 is expected to rise from $176,100 in 2025. The value of a Social Security work credit is also expected to increase in 2026, aligning with the wage cap.
These changes reflect a 5% growth in wage developments and are in line with the government's regulation proposal by the Federal Ministry of Labor and Social Affairs. The SSA's announcements on October 15 will provide clarity on these updates, with formal adoption expected by October 15, 2025. Inflation rates may also influence the final COLA figure for 2026.
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