German crafts leader demands €40bn health insurance cuts to slash labor costs

Jörg Dittrich, president of the German Confederation of Skilled Crafts (ZDH), has called for deeper cuts to statutory health insurance than the government intends. He insists on major reforms to lower non-wage labour costs, which currently stand at almost 43%. His proposals aim to ease financial burdens on employers and workers alike. Dittrich is pushing for total cuts of €40 billion, with €16 billion already approved. These reductions are meant to lower contribution rates significantly. He also backs the removal of penalties for early retirement among long-term contributors.

To streamline costs, his association has suggested a de minimis threshold for tax incentives on craftsmanship services. They also propose digitising the scheme to reduce paperwork. Dittrich further recommends excluding legally required inspections from the tax incentive programme.

He has warned that plans to abolish mini-jobs could drive more people into undeclared work. His arguments centre on the need for structural changes to keep labour costs competitive. The ZDH’s proposals include cuts to health insurance, administrative simplifications, and safeguards against undeclared work. These measures are designed to reduce financial strain on businesses and employees. The government now faces pressure to consider broader reforms in line with Dittrich’s demands.