The 2026 income threshold (JAEG)
To switch from public to private health insurance as an employee, your gross annual income must exceed the Jahresarbeitsentgeltgrenze (JAEG).
gross per year (2026)
This equals approximately €6,450 per month before tax.
What counts toward the threshold
Included:
- Fixed monthly salary
- Guaranteed contractual bonuses (13th month, Christmas bonus)
- Recurring contractual compensation
Not included:
- Unpredictable performance bonuses
- Overtime payments
- One-time payments
- Stock options or equity compensation
Who is exempt from the salary limit?
The income threshold does not apply to:
- Self-employed individuals and freelancers
- Civil servants (Beamte)
- Students who opt out at enrollment
These groups can choose private insurance regardless of income.
Historical JAEG values
| Year | JAEG (gross/year) |
|---|---|
| 2026 | €77,400 |
| 2025 | €73,800 |
| 2024 | €69,300 |
| 2023 | €66,600 |
| 2022 | €64,350 |
The JAEG is adjusted annually by the German government.
What happens if your income drops below the threshold?
For employees, if your income falls below the JAEG, mandatory statutory insurance normally applies automatically. However, you may apply for an exemption under § 8 SGB V within 3 months to remain in PKV. This exemption is irrevocable for this specific situation — but it does not block other routes back to GKV (e.g., through unemployment or a new employment below the threshold under age 55).
For self-employed individuals, there is no automatic return to GKV. A return is only possible under specific conditions and becomes very difficult after age 55.