Definition and Classification of the Burden Limit
Die Burden Limit is a central concept in German law, describing various regulations especially in tax law, social law, and public levy law. The burden limit defines the legally permissible maximum amount of financial contributions or self-payments that can be reasonably expected from a natural or legal person in relation to their income or economic capacity, without causing undue hardship. It serves as a mechanism for social balance and ensures a minimum standard of living in dignity.
Burden limits are implemented as a protective mechanism in the rule of law and appear in various areas of law, where they are specified and applied differently.
Burden Limit in Tax Law
General Legal Principles
In tax law, the burden limit safeguards financial capacity and prevents “excessive” tax claims. The relevant principles are derived in particular from the equality principle (Art. 3 Basic Law) and the social state principle (Art. 20 and 28 Basic Law). According to the Federal Constitutional Court, taxation must not infringe on the subsistence minimum (the so-called subsistence minimum principle).
Practical Implementation
- Income Tax: Income tax law provides for a basic personal allowance , the amount of which is adjusted annually. Income up to the amount of the basic allowance is tax-free to ensure the minimum subsistence level.
- Exceptional Burdens: According to Section 33 of the Income Tax Act (EStG), there is the option of deducting special expenses—for example, medical costs—as exceptional burdens. However, the law takes into account a reasonable self-burden, which is tiered according to income and marital status, and applies beyond the burden limit.
Significance of the Burden Limit in Tax Collection Law
Limiting the tax burden serves to guarantee fundamental rights and to protect against violation of the property guarantee (Art. 14 Basic Law). The ability-to-pay principle requires that taxes be measured according to individual economic capacity.
Burden Limit in Social Law
Health and Health Insurance
In social law, the burden limit mainly applies to statutory health insurance and long-term care insurance:
- Legal Regulations: According to Section 62 SGB V (Fifth Book of the Social Code), it is legally stipulated what portion of copayments for medical services, remedies and aids, medications, and hospital costs insured individuals must pay at most. This personal contribution must generally not exceed two percent of the annual gross income, while a one percent burden limit applies for the chronically ill.
- Hardship Provisions: If the burden limit is exceeded, there is an entitlement to a certificate exempting from further copayments for the remainder of the calendar year.
Social Welfare Law and Basic Security
In the area of basic security and social assistance (Section 82 SGB XII), the so-called “available income” is determined, from which only a reasonable share can be used for benefits, in order to protect the minimum subsistence level and to avert undue burdens.
Burden Limit in Contribution and Levy Law
In levy law—including, among others, municipal levies and fees for public services—the term burden limit is also used:
- Fees and contributions must not place a disproportionate burden on the economic capacity of the payer.
- In disputes, courts examine within the context of proportionality and equity whether a reasonable burden limit has been observed.
Another area of application arises in connection with social insurance, for example, when collecting contributions to pension, long-term care, or unemployment insurance. Here, too, maximum permissible contribution rates are stipulated to ensure employees a reasonable material foundation.
Constitutional Requirements for Burden Limits
Rule of Law Principle and Proportionality
The Basic Law requires that burdens must be neither confiscatory nor threaten one’s existence. The Federal Constitutional Court regularly reviews laws that require citizens to pay contributions, taxes, or copayments with regard to proportionality and reasonableness.
Case Law
The highest court case law requires a clear and comprehensible assessment of economic capacity for every obligation to pay public contributions. If state levies exceed reasonable burden limits, this constitutes a violation of the equality principle and the property guarantee.
Burden Limit and Hardship Provisions
In addition to general provisions, many areas of law have special hardship provisions that apply when the individual burden limit should be set lower due to particular circumstances (e.g., illness, need for care, social circumstances). Accordingly, full or partial exemption from payments, or a reduction in fixed levies, can be granted.
Distinction from Related Terms
A distinction must be made between the burden limit in the legal sense and terms such as self-retention or tax allowance. While burden limits define the maximum reasonable proportion of personal contributions, allowances and self-retentions act as tax or levy instruments for determining the assessment basis.
Significance for Practice
The burden limit has considerable practical implications for taxpayers, insured persons, and recipients of social benefits. It ensures the protection of fundamental rights, social balance, and the prevention of excessive state demands. Authorities and courts must always take into account the individual situation and legal requirements when applying and structuring the burden limit.
Literature, Sources, and Further References
- Federal Constitutional Court, Decisions on the Minimum Subsistence Level (including BVerfGE 82, 60)
- Social Code, in particular Sections 61-64 SGB V
- Income Tax Act (EStG), Section 33
- Commentaries in standard works on social and tax law
Thus, the term burden limit forms a key interface between economic capacity and social justice. In various areas of German law, compliance with the burden limit ensures a balanced relationship between the public interest and the protection of individual freedoms.
Frequently Asked Questions
Which legal regulations determine the application of the burden limit?
The application of the burden limit in the legal context is primarily regulated by the Fifth Book of the Social Code (SGB V). Section 62 SGB V stipulates to what extent those with statutory health insurance may be burdened by copayments and personal contributions in the course of medical care. The burden limit is designed to protect insured persons from financial overload by limiting the annual personal contributions for medicines, remedies, aids, travel costs, and hospital stays. The law provides additional reductions for the chronically ill and especially vulnerable social groups. Furthermore, supplementary regulations can be found in state-specific social assistance laws (e.g., SGB XII), which address the burden limit concerning other social benefits.
How is it determined whether the burden limit has been reached?
The assessment of the burden limit is generally carried out by the statutory health insurance fund. Insured persons must collect all receipts and invoices for copayments made and submit them to their health insurance provider, unless it participates in an electronic recording system. The health insurance then checks whether the statutory limit—normally 2% of the annual gross household income and 1% for the chronically ill—has been reached or exceeded. After submission of the relevant proof, copayment exemption is issued for the remainder of the calendar year. There are precisely defined legal rules on which income components and household members are to be included in the calculation and which types of copayments may be considered.
Which groups of persons are eligible for a reduced burden limit?
The law grants privileges especially to the chronically ill and persons with low incomes. For the chronically ill, who are treated by a doctor for the same serious illness at least once per quarter and who comply with their therapy, the burden limit is set at 1% of the annual gross household income. In addition, children, young people up to 18 years old, and specific socially vulnerable groups are exempt from all copayments. Statutory allowances and special rules also apply in households with several members liable to contribute and in families with multiple children.
What legal remedies are available in disputes over the burden limit?
In the event of disagreements between insured persons and health insurance funds—such as over the amount of eligible copayments or the correct calculation of relevant income—there is the option to lodge an objection to the health insurance fund’s decision. Objections must be submitted in writing within one month of receipt of the notice. If the objection is not granted, legal action may be brought before the competent social court. The types of procedure are governed by the rules of social court law (SGG), and insured persons generally face no cost risk since no court costs are incurred.
How does the burden limit affect other social benefits?
The burden limit also affects benefit entitlements in other areas of law, particularly social assistance law (SGB XII) and the Asylum Seekers Benefits Act (AsylbLG). In the context of health assistance and subsistence benefits, burden limits are applied analogously or in accordance with Section 62 SGB V to also prevent overburdening here. Moreover, the burden limit is included when calculating the actual available income for subsistence, which can affect benefit entitlements.
What are the legal consequences after reaching the burden limit?
Once the burden limit has been reached in a calendar year and this has been reported to the health insurance fund with appropriate proof, the health insurance fund issues a certificate of exemption. The legal consequence of this certificate is that no further legally required copayments may be claimed for the rest of the year. This applies both to medicines and remedies as well as hospital treatments and transport costs. On request, insured persons are entitled and obliged to present the exemption to the doctor, pharmacist, or service provider.
What obligations do insured persons have regarding the burden limit?
Insured persons have various duties to cooperate. They must submit all required income statements and copayment receipts to the health insurance fund in order to apply for the exemption. They are also required to promptly report any current changes in income or household circumstances, as these may affect the burden limit amount. If cooperation duties are breached or incorrect information is provided, this may result in the withdrawal of the exemption or even reclamation of amounts already refunded.
