Minijob in Germany 2024. Work in Germany. Minijobs are a popular type of work in Germany, known for their flexibility and low taxes. They are often chosen by students and people who want to earn extra money. Minijob workers don’t have to pay taxes or contribute to health, nursing, or unemployment insurance. However, they do have to pay into pension insurance. The German Pension and Annuity Insurance warns about a common mistake regarding these contributions.
Minijob in Germany 2024
A Minijob is a type of employment in Germany, known as “minor employment” (geringfügige Beschäftigung), where the monthly income does not exceed 538 euros, or the work is limited to 70 days per year. This option is popular for those seeking flexible work with minimal tax and contribution requirements. Minijob workers are exempt from paying taxes and contributions to health, nursing, and unemployment insurance, but they are required to make contributions to pension insurance, which is mandatory.
Read also: Understanding Unemployment Benefits in Germany
Minijob in Germany and waiver of mandatory contributions
According to the German Pension Insurance, employers must contribute 15% of a Minijob employee’s salary to pension insurance. For a monthly salary of 538 euros, this equals 80.70 euros. Employees usually pay an additional 3.6%, which amounts to 19.36 euros with the same salary. However, Minijob workers can apply for an exemption from these contributions if they choose.
The German Pension Insurance (DRV) cautions against this option, though. “Before applying for exemption from paying contributions, Minijob employees should understand how this might affect their social security. Opting out of the insurance obligation could mean losing protection already gained in case of disability,” warns the DRV. While a Minijob adds only a small amount to future retirement income—less than five euros per month after a year of work with a 538-euro salary—this contribution still provides some level of security.