Working in a “mini-job” is a favored choice for those seeking supplementary income. The benefit of this employment arrangement is the exemption from tax, health insurance, and unemployment insurance contributions. Nevertheless, individuals working in a Minijob must adhere to a specified earnings limit, which has been raised effective January 1, 2024. Furthermore, there have been modifications to the allowable number of hours for Minijob employment. Here’s what you need to know.
Minijob in Germany 2024
Compensation for Minijob employment must not surpass the monthly amount defined by law. In 2024, the earnings ceiling for Minijobs stands at EUR 538 per month or EUR 6,456 per year. All Minijob workers are subject to the Minimum Wage Act, ensuring that their hourly earnings meet or exceed the legally mandated threshold. As of January 1, 2024, the minimum wage in Germany has risen to EUR 12.41 gross per hour. According to the Minijob-Zentrale organization, this wage increase implies that Minijob workers can now work a maximum of 43.35 hours per month in 2024.
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What happens if you exceed Minijob earning limit?
Should an employee surpass the Minijob earnings limit, their employment status no longer qualifies as low-paid. Consequently, they become obligated to pay social security contributions.
Once the Minijob earnings limit is surpassed, employers are required to re-register in compliance with the reporting procedure outlined in the Data Collection and Transmission Regulation (DEÜV). Consequently, a Minijob employee who exceeds the limit transitions to a full participant in the social insurance system, incurring additional mandatory contributions. This shift transforms the Minijob into a Midijob.
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Penalties for employers in Germany for underpaying
In Germany, minimum wage regulations extend to all employees, including those engaged in Minijobs. Employers paying below the legally established minimum wage are liable to fines of up to EUR 500,000, coupled with additional social security contributions.
The new regulations for Minijob workers in Germany as of 2024 are designed to ensure equitable working conditions and employee protection. Breaching the stipulated earnings and hour limits triggers a shift in the status of Minijob employees, leading to mandatory social security contributions. Conversely, failure to meet the minimum wage requirement imposes significant penalties on employers.
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Inflation bonus for Minijob employees
The German government has implemented a tax-free inflation bonus, providing relief of up to €3,000 to mitigate the impacts of inflation. While the bonus is not mandatory for all, it particularly benefits employees engaged in Minijobs, where the typical monthly earnings are just €538. Employers have the option to distribute this bonus until the conclusion of 2024.