What Is the Jahresarbeitsentgeltgrenze?
The Jahresarbeitsentgeltgrenze (JAEG) — literally "annual employment income ceiling" — is the gross salary threshold above which employees in Germany are no longer required to remain in the statutory health insurance system (gesetzliche Krankenversicherung, GKV). Once you earn above this threshold, you gain the right to opt into private health insurance (private Krankenversicherung, PKV).
The JAEG is adjusted annually by the federal government in line with average wage growth. It applies only to employed workers. Self-employed individuals (Selbstständige) and civil servants (Beamte) are not subject to the JAEG and can join PKV regardless of income.
2026 threshold: The Jahresarbeitsentgeltgrenze for 2026 is €77,400 gross per year (€6,450/month). Above this, employees may opt out of GKV.
Historical JAEG Figures
| Year | JAEG (Annual) | Monthly |
|---|---|---|
| 2023 | €66,600 | €5,550 |
| 2024 | €69,300 | €5,775 |
| 2025 | €73,800 | €6,150 |
| 2026 | €77,400 | €6,450 |
How Is Your Income Calculated?
The comparison is against your regular, recurring gross income — not just base salary. Counted toward the JAEG: base salary (Grundgehalt), contractually guaranteed bonuses (e.g. a fixed 13th-month payment), and benefits in kind. Not counted: discretionary bonuses, one-off payments, expense reimbursements, and share options.
The 12-Month Rule
Exceeding the JAEG in a single year is not enough to switch immediately. You must have exceeded the threshold in the previous calendar year and expect to exceed it in the current year. Most employees therefore switch on 1 January. New employees whose starting salary already exceeds the JAEG may join PKV from day one.
What If Your Income Drops Below the Threshold?
If you are already in PKV and your income falls below the JAEG, you do not automatically return to GKV — you can stay in PKV as long as you remain employed. If you become unemployed, GKV membership usually becomes mandatory again.
Above €77,400/year
- Free to choose PKV or remain in GKV
- Employer subsidy (Arbeitgeberzuschuss) applies
- Must formally opt out of GKV
Below €77,400/year
- Mandatory GKV for employees
- Free family insurance (Familienversicherung)
- Some exemptions apply
Frequently Asked Questions
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