Most hairdressing salons work for a low wage.
Photo: dpa / Magdalena Tröndle
According to a report, people in Germany who earn little pay a disproportionately large amount of money into the social security system. This emerges from the response of the Federal Ministry of Labor to a parliamentary request from the left-wing parliamentary group in the Bundestag, which is available to the newspapers of the Funke media group (Tuesday editions). Low-wage earners with an annual income of up to 30,000 euros had 24 percent of the income, but pay 36 percent of the social security contributions.
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According to the report, average earners with an annual income between 30,000 and 50,000 euros have 23 percent of the income and pay 26 percent of the taxes. High earners with an income between 50,000 and 70,000 euros would account for 17 percent of the income and pay 18 percent of the social security contributions.
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After that, the ratio turns due to the contribution assessment limits. Higher earners with an annual income between 70,000 and 110,000 euros accounted for 13 percent of income and 11 percent of social security contributions. Top earners who earn more than 110,000 euros a year would account for 23 percent of income and 9 percent of taxes.
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“It is unfair and unacceptable that average earners have to pay taxes on their entire wages, top incomes only on a small part,” said left parliamentary group leader Dietmar Bartsch the newspapers and called for the contribution assessment limits to be abolished. “The twenty thousandth euro you earn a month must not be better off when it comes to taxes than the two thousandth euro.”
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According to the report, the figures refer to the year 2016 and are the latest available data due to deadlines for income tax returns, according to the ministry.
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