Beitragsbemessungsgrundlage
Beitragsbemessungsgrundlage, often abbreviated as BBG, is the basis on which statutory social security contributions in Germany are calculated. It applies to the insured earnings for the pension insurance, unemployment insurance, health insurance, and long-term care insurance. The BBG represents earnings that are liable to social security deductions in a given period, usually monthly, and determines both the employee’s and the employer’s shares. It is not identical to gross income, as some income items may be exempt or treated differently under the rules.
The BBG is limited by the Beitragsbemessungsgrenze (contribution assessment ceiling). Earnings above this ceiling in a
In practice, payroll systems apply the appropriate contribution rates to the BBG (up to the cap) to
Self-employed individuals and those in voluntary or private insurance schemes participate under different frameworks, but the