What is a mini-job and what is the salary limit?
A mini-job is a type of employment where the income must not exceed a certain limit. In 2024, this is 538 euros per month. Because of this income limit, mini-jobs are also known as marginal employment or 538-euro jobs. The salary limit is dynamic and is based on the minimum wage - if this increases, the income limit also increases. Mini-jobs are not fully subject to social security contributions and therefore offer a high degree of flexibility. They are particularly suitable for marginal or short-term work. Mini-jobbers have the same employment rights as other employees - including, for example, vacation entitlement and continued payment of wages in the event of illness.
Health insurance
Mini-jobs are exempt from compulsory social insurance. This means that anyone who has a mini-job is not automatically covered by statutory health insurance. Mini-jobbers who do not have health insurance through their main employment, family insurance or as students must take care of their own health insurance cover. They can take out voluntary statutory health insurance or private insurance.
If marginally employed persons are covered by statutory health insurance, employers must pay a flat-rate contribution of 13% of their gross salary. These flat-rate contributions are not used to insure mini-jobbers themselves, but are part of the financial contributions that support the entire statutory health insurance system. If mini-jobbers are not covered by statutory health insurance, employers do not have to pay health insurance contributions.
As with other regular employees, employers are obliged to continue to pay the salary for the first six weeks of illness. Anyone in a mini-job who is covered by statutory insurance will receive sick pay from this insurance after the six weeks.
Pension insurance
Mini-jobbers are generally covered by pension insurance. Pension insurance has been compulsory since January 1, 2013 and is an important aspect of social security - through their contributions, mini-jobbers acquire entitlements to the full range of statutory pension insurance benefits, including pension entitlements, rehabilitation benefits and a possible reduced earning capacity pension.
Employers pay a flat-rate pension insurance contribution of 15 percent of earnings. Employees in mini-jobs currently pay 3.6 percent of their gross earnings. For a salary of 538 euros, this amounts to 19.36 euros per month.
Anyone who is employed in a mini-job can apply for exemption from the pension insurance obligation. In this case, only employers pay the lump sum of 15%, mini-jobbers do not have to pay any contributions - but then also acquire no or only low pension entitlements. The exemption from compulsory insurance can no longer be withdrawn until the employment relationship ends.
Is an exemption from compulsory pension insurance worthwhile?
Whether an exemption from the insurance period is worthwhile depends on various personal and financial factors. There are both advantages and disadvantages that employees should consider.
Advantages of exemption from compulsory pension insurance:
- More net income: If mini-job employees are exempt from the pension insurance obligation, they do not have to pay their own pension insurance contributions. This increases their net income.
- Flexibility: If you only want to work for a short time or on the side and are not entitled to later pension benefits from this employment, the exemption gives you more flexibility.
Disadvantages of exemption from compulsory pension insurance:
- Lower pension entitlements: As a result of the exemption, employees in mini-jobs acquire little or no entitlement to a statutory pension from this employment. This can be particularly disadvantageous in the long term for people who have no other pension provision.
- Loss of other benefits: Other rights are also associated with compulsory pension insurance, such as entitlements to rehabilitation or a reduced earning capacity pension. These rights no longer apply with the exemption.
- Possibility of topping up forfeited: In the case of compulsory pension insurance, mini-job employees have the opportunity to acquire full pension entitlements through their own contribution payments. This option is lost in the event of exemption.
Accident insurance
There is no exemption from accident insurance in Germany. Even marginally paid employees are covered in the event of an accident at work or occupational illness.
While mini-jobbers do not pay any contributions, employers bear the entire costs. The amount of the contribution that employers have to pay is determined by the respective employers' liability insurance association contribution. This contribution rate varies depending on the risk assessment of the respective industry and the frequency of accidents. The employers' liability insurance associations are responsible for statutory accident insurance in Germany and calculate the contributions on the basis of a pay-as-you-go system.
Unemployment and long-term care insurance
Mini-jobs are exempt from compulsory contributions to unemployment and long-term care insurance. Employees in mini-jobs are therefore not entitled to unemployment benefit if they lose their job. This regulation reflects the general orientation of mini-jobs, which are intended more as a supplement to the main job or as temporary employment and do not offer complete social security.