Less bureaucracy: No more "average wages"
Up until now, social security contributions for seafarers on German-flagged sea-going vessels have not been calculated based on the actual income but according to the "average wages". These average wages are average figures for seafarers' salaries that are defined by a committee of the German Social Accident Insurance Institution for Commercial Transport, Postal Logistics and Telecommunication (BG Verkehr), on the basis of employment agreements for German maritime shipping.
On 6 November 2025 the "Bundestag" adopted amendments to the "Sozialgesetzbuch" (Code of Social Law) VI in its third reading of the act, which contains the abolishment of the average wage scheme for seafarers in Article 9 Paragraph 4. This part of the act comes into force on 1 January 2027. It accommodates the wish of the shipping companies to provide sufficient transition time to modify the payroll.
The act regulates the adjustment of the notification and contribution procedure for seafarers from average wage to actual salary. As of 2027, the same calculation and payment of social security contributions applies for seafarers as for other economic branches. The transition applies to all social security branches of the statutory social security.
The abolishment of the special arrangement for seafarers offers shipping companies the option to use the same standard accounting software as for their land-based employees. The German Flag becomes easier and less bureaucratic.
According to the explanatory memorandum for the act, this simplification will not lead to any disadvantages for seafarers:
"The abolishment of the special average wage procedure for employed seafarers means that seafarers will be treated the same way as other commercial employees regarding contributions, without this leading to shifts in contributions in the form of contribution shortfalls or in the associated benefits for seafarers. The salary for seafarers already consists of basic wages, bonuses for shifts on Sunday, public holidays and during night, other benefits in kind, a flat-rate overtime allowance and the basic wage supplement entitlement. All these types of renumeration are to be included in the current or one-off remuneration pursuant to Section 14 of Book IV of the "Sozialgesetzbuch", so that the special provision for determining the average wage tables is no longer justifiable." (explanatory memorandum for Article 9 No.4 = page 76)
The act was announced in the Federal Law Gazette on 23 December 2025; the legislative procedure has therefore concluded.
The abolishment of the average wages should have already been adopted by the "Bundestag" the year prior. However, the respective legislative procedure could not be concluded due to the breakdown of the governing coalition, which led to a shortened legislative period.