Factsheet for measure
DE-2022-40/3052
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Updated
– measures in Germany
Marginal employment earning threshold raised
Anhebung der Midijob Grenze
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.
Updates
The following updates to this measure have been made after it came into effect.
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24 October 2024
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From 1 January 2025, a new threshold for mini-jobs of €556 per month will apply.
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16 November 2023
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On 1 January 2024, the threshold for so-called mini-jobs were raised. Mini-jobbers can now earn €538 per month instead of €520 per month.
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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.
As of 30 September 2024, 6.7 million mini-jobbers worked in the commercial sector and 246,686 in private households in Germany (Minijob-Zentrale). The number of mini-jobbers in the commercial sector has increased by 0.3% compared to the previous year. In contrast, the number of mini-jobbers in private households has fallen by 4.2% compared to the previous year.
Target groups
Actors and funding
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Actors
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Funding
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National government
Public employment service
Social insurance
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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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
