From 1 January 2027, companies commissioning artistic or journalistic work must factor in a higher contribution rate. The Federal Ministry of Labour and Social Affairs has submitted the Artists’ Social Security Contribution Ordinance 2027 for consultation with relevant departments and associations. According to the ordinance, the rate will rise from 4.9 per cent (2026) back to 5.0 per cent.
Why is the rate going up again?
Following the economic downturns caused by the coronavirus pandemic, the Artists’ Social Security Fund’s revenue had risen significantly in recent years. This made it possible to keep the contribution rate stable at 5.0 per cent in 2024 and 2025, and even to reduce it slightly to 4.9 per cent for 2026. However, these reserves will no longer be sufficient for 2027. The strained economic situation makes a return to the previous year’s level necessary.
What is the artists’ social security contribution?
The artists’ social security contribution is a levy that companies must pay when they commission freelance artists or writers and utilise their works or services. Typical examples include commissions for graphic designers, copywriters, photographers or musicians. Through this system, around 185,000 self-employed creative professionals across Germany are covered by statutory health, long-term care and pension insurance. The levy paid by companies covers around 30 per cent of the contributions, with a further 20 per cent provided by the federal government as a subsidy.
The basis for assessment is the total of all payments made by a company to self-employed artists and journalists during the calendar year. The contribution rate is reviewed annually.
Higher de minimis threshold eases the burden on small contracting authorities
Not every business is automatically liable to pay this levy. Those who purchase artistic services only occasionally and on a small scale may remain below the so-called de minimis threshold. This threshold has recently been raised in stages. Since 1 January 2026, it has stood at 1,000 euros per calendar year. Until the end of 2024, it was 450 euros; from 2025, an interim figure of 700 euros applied. However, this threshold does not apply to businesses that typically and regularly utilise artistic works.
What does this mean for the businesses affected?
Small and medium-sized enterprises that regularly commission external creative professionals – for example, for websites, marketing materials or social media content – should take the new rate into account in their planning for 2027. Anyone who overlooks this reporting obligation risks having to make back payments and facing audits by the German Pension Insurance Fund, which monitors compliance with reporting requirements.
The increased de minimis threshold of 1,000 euros provides relief for smaller clients who only purchase creative services on an occasional basis. Anyone who is unsure as to whether they are liable to pay tax, and if so, at what rate, should seek clarification through tax or employment law advice.
Source: Haufe: Human Resources
This post and the accompanying image were created with the help of AI and have been editorially reviewed.
