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Contribution assessment ceiling

Relevance: Social security

Term used in the German Social Security Code (SGB IV). The contribution assessment ceiling (CAC) is the maximum gross monthly salary amount on which contributions to the statutory social security insurance are calculated. In 2015, the threshold was 6050 euros/month in Western Germany and 5200 euros/month in Eastern Germany. If the gross income of a worker exceeds this limit and he/she remains voluntarily insured under the statutory scheme, any income exceeding the contribution assessment ceiling is not taken into account when calculating the contributions. This means that, for those earning above the threshold, the monthly social security contributions remain constant.

Source: touring artists Social Security, edited and translated

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