Background information

Due to the rising inflation resulting from the ongoing war in Ukraine, the federal government has adopted three relief packages during 2022: the first two from the first half of 2022; the third in from autumn 2022. The three packages, together, are worth €95 billion. In addition, the federal government created a fund worth €200 billion to cushion the rising energy prices. Against this background, the federal government is also using other labour market instruments to provide low-income earners with more net earnings.

Content of measure

In October 2022, the federal government raised the earning thresholds for marginal employees. There are two forms of marginal employment in Germany. The first refers to so-called mini-jobs that allow mini-job holders, starting from 1 October 2022, to earn €520 per month whilst paying strongly reduced social security contributions in comparison to other employees in standard employment. The second marginal employment form refers to the so-called midi-jobs. Since 1 October 2022, employees in midi-jobs could earn between €520,01 and €1,600 per month (also paying reduced social security contributions). However, the latter threshold was raised to €2,000 with effect from 1 January 2023. The federal government decided to take this step in order to provide low-income employees with higher net incomes in times of high inflation.

Use of measure

The central collecting and reporting agency for all marginal part-time jobs (Minijob-Zentrale) reported that on 30 June 2023 over 6.6 million mini-jobbers worked in the commercial sector and 269,081 mini-jobbers in private households in Germany. Whilst the number of mini-jobbers in private households has fallen compared to the previous year, the figure in the commercial sector has increased by 3.5 percent.

Target groups

Workers	Businesses	Citizens
Workers in non-standard forms of employment	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public employment service Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

In autumn 2022, social partners were asked for their comments and positions for a parliamentary hearing regards the legislative changes needed to raise the midi-job threshold.

Views and reactions

Employers organisations, such as the Confederation of German Employer Association (BDA) strongly criticised raising the midi-job threshold. In the view of the BDA, the reform set incentives for workers to work part-time only (though the German economy faced labour shortages). In addition, labour costs were raised once more by this measure. The Confederation of German Trade Unions (DGB) similarly criticised the measure for creating incentives to work part-time jobs that did not secure a living. In addition, the measure burdened the statutory social security system as marginal employees only paid lower contributions.

Sources

• 13 October 2022: DGB position on energy grant for pensioners and on midi-jobs (www.bundestag.de)
• 14 October 2022: BDA position on new midi-job threshold (www.bundestag.de)
• 01 January 2023: New midi-job threshold (www.bundesregierung.de)
• 30 June 2023: Quarterly report on the number of mini-jobbers (www.minijob-zentrale.de)