Germany’s 2024 withholding formula was updated effective April 1 following additional legislative changes that were passed at the end of 2023.
The primary change to the withholding formula (German) was to the long-term care insurance contribution. Employees with at least two and up to five or more children can subtract 0.25 percentage points from the total 3.4% contribution rate for each child from the second to the fifth, up to a maximum deduction of 1 percentage point. All deductions subtract from the employee contribution rate, so that the lowest possible employee contribution is 0.7% instead of 1.7%.
Amendments to the ...
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