Artists’ Social Security Contribution to Rise to 5.0 Percent in 2027: What This Means for Businesses

Many companies in Germany pay a levy about which they know surprisingly little—the artists’ social security contribution. Starting in 2027, the contribution rate will increase from the current 4.9 percent to 5.0 percent. The Federal Ministry of Labor and Social Affairs announced this in its draft of the 2027 Artists’ Social Security Contribution Regulation. The regulation still needs to be adopted by the federal government and confirmed by the Bundesrat. For affected companies, it’s worth taking a closer look at their obligations.

What Artists’ Social Insurance Is—and Why Companies Pay

Through the Artists’ Social Insurance system, approximately 185,000 self-employed artists and journalists are currently covered as mandatory insured persons under statutory health, long-term care, and pension insurance. Similar to employees, they pay only about half of their social insurance contributions themselves. The other half is financed 20 percent by a federal subsidy and 30 percent by the artists’ social security levy paid by companies that utilize artistic and journalistic services.

The levy operates on a pay-as-you-go basis: The percentage is recalculated annually and applied to all fees a company has paid to self-employed artists and journalists over the course of a calendar year. With the planned increase to 5.0 percent, the rate will return to the level seen from 2023 to 2025, after having been slightly reduced to 4.9 percent in 2026.

Which companies are affected?

The levy applies to far more companies than many assume. First and foremost, the so-called “typical exploiters” are subject to the levy—that is, companies whose business model is based on the use of creative services. These include, for example, publishers, advertising agencies, theaters, galleries, museums, radio and television stations, and event agencies.

In addition, however, all other companies are also affected if they commission self-employed creative professionals more than just occasionally—whether for their own advertising, website design, flyer design, or the creation of texts and photos. Anyone who pays fees totaling more than 1,000 euros to self-employed artists or writers in a calendar year is generally subject to this tax. This de minimis threshold has been in effect since January 1, 2026.

In practice, this means that virtually every company that commissions a freelance photographer, graphic designer, web designer, copywriter, or even an influencer for product advertising may be subject to this tax.

What Specifically Changes with the New Tax Rate

The increase of 0.1 percentage points may seem small and only has a noticeable effect on higher fee amounts. Example: A company that pays 50,000 euros annually to self-employed creative professionals will pay 2,500 euros to the Artists’ Social Security Fund starting in 2027, instead of 2,450 euros—an additional cost of 50 euros. The contribution may not be billed to the commissioned artist or publicist or deducted from their fee.

The assessment basis is the net fee excluding value-added tax. Travel expenses listed separately are also not subject to the levy. Material costs and other incidental expenses that are not listed separately, however, are included in the remuneration subject to the levy.

What Companies Should Keep in Mind

Companies subject to the levy are required to register with the Artists’ Social Insurance Fund, report the total amount of remuneration paid annually, and make monthly advance payments. Compliance is monitored as part of regular social security audits conducted by the German Pension Insurance (Deutsche Rentenversicherung). Violations of reporting and payment obligations may result in fines of up to 50,000 euros.

It is particularly advisable for companies that have not previously been on the Artists’ Social Security Fund’s radar to proactively clarify their own situation. Typical areas of audit include missing or late reports, unreported fees, and the incorrect classification of contractors.

About Trimborn . Partner

Trimborn . Partner is an award-winning tax consulting and auditing firm with offices in Düsseldorf and Oberhausen. As experienced tax advisors for small and medium-sized businesses, we advise companies, freelancers, and the self-employed on all matters related to payroll accounting, social security obligations, and the tax treatment of fee payments. If you’re unsure whether your business is subject to the artists’ social security contribution or how to properly fulfill your reporting obligations, please feel free to contact our tax advisory experts in Düsseldorf and Oberhausen.