During the 1st half calculations, the federal office found that employers and employees have been excess amounts into the Social Pension fund. It is expected by end of the year, the Social Pension Fund will have received an excess of 30million euros, which might see the contributions from each employer and employee reduced come 2014.
Experts had expected a drop from 18.9 to 18.7 or 18.6% but the numbers had something else in store. After the new figures were released, it was quite evident that the new rate will have to drop further to 18.4% a number that hasn’t been seen for more than 20yrs in Germany.
The lowest the rate had been was 17.5% in 1993 and since then it just kept going higher being at 19.2% in 1994 and the highest at 20.3% in 1997.
Experts believe that the new rate of 18.4% will stay around until around 2017 but in 2018 we’ll definitely see an increase again.
So for an income of €2600, a person would have been paying €245.70 and with the reduction they’ll pay €239.20 making a savings of €6.50 per month for both the employee and the employer. It might not look like much, but do you know that’s close to Ksh. 650. It can buy you lunch at Mama Ntilie plus a drink at Mama Pima….Actually if you save that each month for 100months (8+ years), you can then afford a return trip to Kenya….lol…Diasporan problems.
PS: Can you imagine paying over Ksh 20K as taxes…..and that’s not the only amount you’re paying…weee si nawashwa…lol…..these German taxes will send you back to where you came from.