Siemens board member Veronika Grimm warns of drastic rise in social security contributions

Veronika Grimm, a corporate director at Siemens Energy, expects a sharp increase in social security contributions. "Someone born in 2000 would, if the current legal situation continues, bear a contribution burden of 50 percent," Grimm told the "Bild" (Thursday edition). Grimm told the newspaper that the total social security contribution could rise to up to 55 percent of the gross salary over a lifetime of employment.

The contributions affected are those for pension, health, long-term care, and unemployment insurance, which are jointly borne by employers and employees. For employees, this would mean significant additional costs: hypothetically, at 3,000 Euro gross, this would amount to around 191 Euro extra per month compared to the current level, and around 305 Euro at 4,800 Euro gross.

"The system is heading into an unsustainable dimension," warned Grimm. Politics must mitigate the rise in contributions through reforms in the social security systems. However, this will be uncomfortable because it would lead to the elimination of benefits-such as the pension at age 63.