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EXPLAINED: The rules in Germany around 'mini' and 'midi-jobs'

Aaron Burnett
Aaron Burnett - [email protected]
EXPLAINED: The rules in Germany around 'mini' and 'midi-jobs'
Lots of people who work in the hospitality industry have mini-jobs. Photo: picture alliance/dpa | Angelika Warmuth

So-called “mini-jobs” are widely used in Germany so employers can bring on part-time employees - whose smaller earnings are then generally exempt from tax. But how does the scheme work?

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Germany introduced mini-jobs in 2002 as a way for employers to get part-time workers more easily, and for those same workers to enjoy the flexible working arrangements part-time work can sometimes offer, with certain exemptions from tax.

But Germany’s complex social welfare setup means taking and declaring mini-jobs isn’t always straightforward. We break down the most common questions.

What are mini and midi-jobs?

Mini-jobs are designed to be casual side jobs for earning a little extra income. They can be particularly attractive for students, but mini-jobbers come from all walks of life.

Workers can’t earn more that €450 a month from their mini-job, or work more than 70 days at one mini-job in a year. Shorter-term mini-jobs, such as seasonal work around Christmas holidays or in summer, are possible but cannot exceed three consecutive months in a year.

Retail stores or bars that need a little extra help during a busy period are some of the most common mini-job providers, but mini-jobs exist in almost every sector in Germany. The German Retail Association estimates that over 800,000 people work mini-jobs across the country.

Jobs where someone earns between €450 and €1,300 per month are known as “midi-jobs.” They’re another category of part-time work in Germany where the worker doesn’t quite make enough to be subject to full obligations - and protections - under German labour law. Unlike mini-jobs, they are subject to certain rules on tax and social security contributions on a “sliding scale.”

Although the current monthly income limits are €450 for mini-jobs and €1,300 for midi-jobs, the newly elected federal government has plans to increase these amounts to €520 and €1,600, respectively.

READ ALSO: Wages, rent and pensions: What will the new German government mean for your wallet?

What rights and obligations do mini-jobbers have?

In Germany, employees typically pay social security contributions as a portion of their income deducted from their monthly pay. A worker’s company also pays into these contributions, which cover both an employee’s public health insurance and their pension insurance.

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Certain freelancers, such as musicians, artists, and writers, can make these contributions through the German Artists Social Insurance Fund (Kunstlersozialkasse). Mini-jobs are exempt from this, meaning neither the worker nor the employer have to pay these contributions, making mini-job income largely tax exempt.

A mini-jobber’s employer will typically take off a flat tax of two percent of gross income off the employee’s pay and send the money to the government. In many cases, this is all the tax a mini-jobber will have to pay.

The flip side of this is that mini-jobbers have no recourse to unemployment insurance, for example. A Federal Labour Court has also recently ruled that mini-jobbers are not entitled to wage compensation if the business they’re working for has to close due to Covid-19 restrictions. Mini-jobbers are also not entitled to Kurzarbeit benefits—a German scheme where companies receive public money to help pay their workers in return for not laying them off.

READ ALSO: Job news in Germany: Mini-jobbers lose out in Covid closures and VW layoffs

In areas that don’t involve tax and social security contributions, mini-jobbers enjoy broadly the same rights and obligations as other part-time employees. These include protections against wrongful dismissal, continued payments if the worker’s child gets sick, and renumeration for working on a Sunday or public holiday.

They are also covered by the employer’s insurance if an accident happens either at work or on their commute. Mini-jobbers also receive paid vacation days that are prorated based on how much they work relative to a full-time employee.

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They must also be paid the statutory minimum wage (currently €9.60, but the government wants to raise this to €12 by the end of the year). Germany’s recent “3G” rule for workplaces, where employees must be vaccinated, recovered, or present a recent negative test for Covid-19 when showing up to work, also applies to mini-jobbers.

READ ALSO: German employers weigh up legal challenge to €12 an hour minimum wage

What if a have a mini-job alongside my regular one, or if I work more than one mini-job?

A worker in Germany who has a job where they pay regular social security contributions can hold a mini-job on top of this but will typically need the consent of their main employer. Someone working more than one mini-job will be exempt from having to pay social insurance contributions up to the first €450 they earn a month. They’ll typically have to pay tax and social insurance on anything they earn on top of this, even if it comes from another mini-job.

A “midi-jobber,” or someone who is earning between €450 and €1,300 per month, must typically pay tax and social security contributions on whatever income they earn that’s over €450, with the first €450 being exempt. Social insurance contributions on money earned that’s between €450 and €1,300 per month are typically reduced though. On the flip side, a midi-jobber will be entitled to certain levels of pension and unemployment insurance that a mini-jobber is not.

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Can you hold a mini-job while receiving unemployment benefits?

Yes, but you must notify your local Jobcentre before you take on the mini-job. If you don’t, your benefits could be reduced. Furthermore you can only work less than 15 hours a week, or will no longer be considered unemployed. You will also not be able to keep most of the income you earn above €100 a month, depending on what unemployment benefit you are receiving.

Vocabulary

Mini-jobs/midi-jobs or marginal employment – (die) geringfügige Beschäftigung

Part-time workers – (die) Teilzeitbeschäftige

Side job – (der) Nebenjob

Sliding contribution scale – (die) Gleitzone

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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