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Jahresarbeitsentgeltgrenze (JAEG) 2026 – €77,400 Income Threshold for Private Health Insurance in Germany
What is the Jahresarbeitsentgeltgrenze (JAEG) 2026?
The Jahresarbeitsentgeltgrenze 2026 (JAEG 2026), also known as the income threshold for private health insurance in Germany, defines the minimum salary an employee must earn in order to switch from statutory health insurance (GKV) to private health insurance (PKV).
In 2025, the threshold was €73,800.
From January 2026, the JAEG rises to €77,400 gross per year (+4.9%).
Employees earning below the JAEG 2026 remain in the GKV, while those above €77,400 can apply for private health insurance.
Why the JAEG 2026 is important for employees
The JAEG 2026 income threshold directly determines who is eligible to join PKV in Germany.
Eligibility: Only employees above the JAEG 2026 can switch to private health insurance.
Financial impact: Contributions in GKV can exceed €1,000 per month, while PKV may be significantly cheaper.
Healthcare benefits: Private health insurance offers faster access to doctors, premium treatment options, and better overall care.
For many high earners, the JAEG 2026 threshold is the decisive factor for their healthcare options in Germany.
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Historical development of the JAEG
The JAEG has risen steadily over the past two decades:
2001: €40,500
2013: €52,200
2025: €73,800
2026: €77,400
Since 2013, this represents an increase of over 48%. Employees today must earn roughly €2,100 more gross per month than in 2013 to qualify for private health insurance Germany.
Difference between JAEG 2026 and the contribution assessment ceiling
The Beitragsbemessungsgrenze (BBG) in health insurance also rises in 2026 – from €66,600 (2025) to €69,750 per year.
This creates a gap of €7,650 between the BBG and the JAEG 2026.
BBG: Defines the maximum income on which GKV contributions are calculated.
JAEG 2026: Defines who can switch to PKV.
Since 2003, the JAEG has been raised disproportionately compared to the BBG. The result: fewer employees are eligible to switch to private health insurance Germany.
Political criticism of the rising JAEG 2026
Experts and associations criticize the increase of the JAEG 2026 for several reasons:
Restriction of choice: Millions of employees remain longer in the statutory system without the option to change.
Burden on high earners: Those above the BBG but below the JAEG continue paying high GKV contributions without access to PKV.
Distorted competition: The growing gap between BBG and JAEG weakens the natural competition between GKV and PKV.
Redistribution: The statutory system increasingly relies on high contributions from a shrinking group of top earners.
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Why switching to PKV in 2026 is crucial
If your income is above the JAEG 2026 of €77,400, you should consider switching to private health insurance Germany:
Secure eligibility: Once you’re in PKV, you can apply to remain even if your income later falls below the threshold.
Future proofing: The JAEG increases almost every year, making entry into PKV harder in the future.
Cost efficiency: For singles and dual-income households, PKV can be cheaper than GKV.
Premium care: Faster appointments, private hospital rooms, and specialist access.
We support employees with the switch to private health insurance in Germany – from eligibility check to application and implementation.
Conclusion: Jahresarbeitsentgeltgrenze (JAEG) 2026
The increase of the JAEG to €77,400 in 2026 shows how limited the choice for employees in Germany has become. At the same time, the contribution assessment ceiling rises, further burdening the middle class.
The JAEG 2026 restricts freedom of choice.
High earners pay more without access to PKV.
The gap between BBG and JAEG highlights the imbalance in the German healthcare system.
For those who exceed the income threshold for private health insurance Germany in 2026, switching now may be the best way to secure long-term benefits.
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Health insurance in Germany can be simple. Our friendly team helps you find the perfect private health insurance plan, whether you're an employee, freelancer, or applying for a visa. Get personalized assistance and peace of mind.
