Minijob in Germany: Salary Size, Deductions from Salary

§ What is a Minijob?

A minijob or mini-job is a small or short-term employment where the employee receives a salary that does not exceed the legally established maximum (German: geringfügige Beschäftigung) or the specified number of working days per year (German: kurzfristige Beschäftigung). This type of employment is regulated by the Social Code (SGB IV), § 8 (link below on the page) and is officially called "Insignificant Employment" (German: Geringfügige Beschäftigung).

A Minijob or mini-job in Germany is a minor or short-term employment where the employee's monthly salary does not exceed 538.00 euros or the working time does not exceed 70 days per year.

During a Minijob, the employee does not bear obligations for social insurance; they do not contribute from their salary to the state health insurance, care insurance, unemployment insurance, and can opt out of contributions to the pension insurance fund.

§ Salary Size in Minijobs Now and Over the Years

As of 27.04.2024, the maximum salary (German: Verdienstgrenze) for a Minijob is 538.00 euros gross for 1 month of work. Since Germany has a Minimum Wage Act (German: Mindestlohn), along with the increase in the minimum wage, the maximum salary for those employed in insignificant employment also increases. The monthly salary for a Minijob may be more or less in some months, but over the course of a full year, the sum should not exceed 6456.00 euros.

In some cases, for example, in unforeseen production needs, a Minijob worker can work more for 2 months a year and earn a salary exceeding the legal limit by 2 times. Thus, considering the provisions of the law, aMinijob worker can earn 1076.00 euros per month for 2 months a year , benefiting from the privileges of mini-jobs. In this case, their annual salary could amount to 7532.00 euros.

In der folgenden Tabelle wird die Änderung des monatlichen Gehalts bei Minijobs dargestellt.

Table 1: The table below shows the change in the monthly rate for Minijobs

Future Increase in the Salary Limit for Minijobs

The Minimum Wage Commission regularly reviews the amount of the minimum wage, and if necessary, increases it. With the increase in the minimum wage, the limit for the maximum salary in Minijobs in Germany also increases. The new salary limit for Minijobs is determined by the formula: Minimum Wage * 130/3 and rounded to full euros so that for Minijobs and the Minimum Wage rate, the working time is 10 hours per week. The following is a list of planned future increases in the overall minimum wage and Minijob salary in Germany:

• From 01.01.2025 the salary will be 556.00 €;

Diagram 1: Changes in Minijob Salary in Germany Over the Years

§ Deductions from Salary in Minijob: Taxes and Social Contributions

How much tax and social contributions does an employee pay from their salary in a Minijob? An essential factor here is whether they work for a company or in a private household. Depending on this, the payment of taxes and social contributions from the employee and employer looks different. Let's explore deductions from the salary using the example of working for a company.

Deductions to Social Insurance Funds

A Minijob worker does not pay contributions from their salary to state health insurance, care insurance, or unemployment insurance. However, they can choose whether to contribute to pension insurance or not.

If they choose to do so, the contribution to the pension fund is 3.6%, resulting in 19.37 from a sum of 538.00 euros.

Income Tax

Salary in a Minijob is subject to income tax. In most cases, the employer pays a fixed 2% lump-sum tax (German: einheitliche Pauschsteuer) from the employee's salary. In this case, the employee does not pay any taxes from their salary. As an alternative, the employer may calculate the income tax on the Minijob salary using the regular tax classes. In this method, the employer withholds income tax from the employee's salary. However, if the Minijob is their only job, depending on the tax class, the employee may not have any tax withheld.

So, when working for a company, in most cases, no taxes or contributions are deducted from the salary in a Minijob. In such cases, the gross salary is equal to the net salary.

§ Minimum Wage (Mindestlohn) and Minijob, Maximum Number of Working Hours

In a Minijob, the minimum wage for the worker should be at least 12.41 per hour, as Germany has a Minimum Wage Act (Mindestlohn). According to this law, all workers in Germany must receive a salary not less than the established limit. See more details on the Minimum Wage in Germany.

Considering that the worker can earn a maximum of 538.00 per month in a Minijob, and the hourly rate is at least 12.41 per hour, the maximum number of working hours in a Minijob is 43.4 hours per month.

§ Working Multiple Minijobs

An individual can work in multiple Minijobs, but their total income from these jobs must not exceed the legal limit of 538.00 per month. If this limit is exceeded, the worker has an obligation to pay insurance contributions to social insurance.

Minijob in Germany: Salary, Deductions