Mini job - regulations, the 2024 earnings limit and useful tips

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.

What taxes do companies have to pay?

A mini-job incurs various taxes that both employers and employees have to pay:

1. Pension insurance
   • Employers: 15 %
   • Employees: 3.6 % or exemption
2. Health insurance‍
   • Employers: 13 %
   • Male and female employees: -
3. Wage tax
   • Employers: 2 %
   • Male and female employees: -
4. Insolvency money levy
   • Employees: 0.06 %
   • Male and female employees: -
5. Allocations for (U1 and U2)
   • Employees: amount depends on the respective health insurance fund and the industry
   • Employees and workers: -
     

What is a short-term mini-job?

Anyone who employs workers as part of a short-term mini-job may not employ them for longer than three months or a total of 70 working days. In contrast to a regular mini-job, there is no earnings limit. Employees may therefore also earn more than 538 euros per month - as long as the employment is not carried out on a professional basis and does not primarily serve to earn a living. This means that the employment must be of "minor economic importance for the employee".

Neither employees nor employers have to pay contributions to health, long-term care, pension and unemployment insurance. However, employers must pay contributions to accident insurance.

Short-term mini-jobs are particularly worthwhile for seasonal jobs in the catering industry, at events and for students during the semester break.

Watch out for the minimum wage

Employers need to be particularly careful when it comes to the minimum wage. Employees in marginal employment are entitled to the minimum wage. At the same time, however, the earnings limit must not be exceeded. This means that if the workload is increased, the calculated hourly wage can quickly fall below the minimum wage by mistake.

Currently, the minimum wage is 12.41 euros per hour and the earnings limit for mini-jobs is 538 euros per month. Mini-jobbers are therefore allowed to work a maximum of 43.35 hours per month (538 euros / 12.41 euros = 43.35 working hours).

Employers should establish a time recording system that allows them to keep track of their employees' hours at all times. Violations of the minimum wage can result in drastic penalties of up to 500,000 euros.

Registering with the mini-job center - you must follow these steps

In Germany, mini-jobs must be registered with the mini-job center. This applies to both commercial and private mini-jobbers.

Required documents

You will need the following information to register:

• Personal data of the employee, such as name, address, date of birth and social security number.
• Details of the employment relationship, including the start of the employment relationship, the amount of pay and the expected duration if it is short-term employment.
• Details of the employee's place of work and health insurance fund, if known.

Registration

There are various ways to register:

• Online: The quickest and most convenient way to register is online via the Minijob-Zentrale portal.
• By post: You can also print out the necessary forms, fill them in and send them to the mini-job center.
• By telephone: For general questions or support, you can also contact the Minijob-Zentrale by telephone.

Pay contributions

After registering, you must pay the social security contributions and flat-rate taxes due to the mini-job center each month. This includes contributions to pension insurance and, if applicable, health insurance as well as flat-rate income tax (if selected).

Compliance with reporting obligations

Remember that you must also report any changes in the employment relationship, such as an increase in pay above 538 euros or the termination of the mini-job, to the mini-job center.

Annual reports

At the end of each year, you must send an annual report for each mini-jobber to the mini-job center. This notification is important for pension insurance as it forms the basis for employees' pension entitlements.

How many mini-jobs are employees allowed to have at the same time?

As long as the total earnings do not exceed 538 euros, employees may have more than one mini-job. If marginally employed persons earn more than the salary limit with their mini-jobs, all jobs become subject to compulsory insurance.

If you would like to have a part-time job in addition to your main job that is subject to compulsory insurance, you can do this in the form of a mini-job. However, only one mini-job may be carried out alongside a main job. All other mini-jobs are added together with the main job, exceed the earnings limit and are therefore no longer counted as a mini-job.

Before registering, employers must ask whether the employee already has a mini-job and whether the earnings limit of 538 euros per month is exceeded.

Is the mini-job tax-free?

Employees do not have to pay tax during a mini-job - the salary is tax-free. Employees who only receive their salary from a mini-job do not have to submit an income tax return. Employers pay a flat-rate wage tax of 2% on the gross salary.

Child benefit in a mini-job

The family benefits office pays child benefit up to the child's 18th birthday - it is continued up to the age of 25 if the child is still in school or vocational training or is studying. As child benefit is paid regardless of the child's income, a possible mini-job has no influence on the receipt of child benefit. Parents of children with a mini-job can therefore continue to receive child benefit without having to worry about income limits.

In summary - employers must be aware of the following

Employers must consider various legal, administrative and social aspects when hiring mini-job employees to ensure that all regulations are complied with.

The following list should give you an overview:

1. registration and fees

• Registration with the mini-job center: mini-jobs must be properly registered with the mini-job center.
• Payment of contributions: Employers are obliged to pay lump-sum contributions to pension and health insurance as well as a lump-sum wage tax.

2. compliance with the minimum wage

• Minimum wage: The statutory minimum wage must also be observed for mini-jobs. This amount is regularly adjusted and should always be reviewed.

3. labor law provisions

• Employment contract: A written employment contract is also recommended for mini-jobs, which clarifies the main conditions of employment.
• Equal treatment: Part-time employees are entitled to the same working conditions as full-time employees, for example with regard to vacation, sick pay and holiday pay.
• Working hours: Working hours must be documented and may not exceed certain legal limits.

4. documentation and reporting

• Obligation to keep records: Working hours, overtime and time off must be carefully recorded.
• Annual reports: At the end of each year, an annual declaration must be submitted to the mini-job center.

5. data protection

• Data protection regulations: Employers must ensure that employees' personal data is handled and protected in accordance with data protection laws.

6. attention to health insurance

• Health insurance: Although marginally employed persons are not covered by health insurance via the mini-job, employers must pay flat-rate contributions to health insurance if employees are covered by statutory health insurance.

7. termination of the employment relationship

• Notice periods: The statutory or contractually agreed notice periods must be observed.

8. verification of employment for multiple employment

• Multiple employment: For employees with multiple employment relationships, it must be checked whether the income limit of EUR 538 per month is exceeded in total, which could lead to a social security obligation.

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Conclusion

Mini-jobs are ideal for marginal or short-term work - because they are exempt from social security contributions. Due to their flexibility, they are popular with both employers and employees. They offer a particularly good opportunity for students, pensioners and people with low qualifications or those who want to supplement their income.

In addition to registration and annual notification, employers must pay particular attention to compliance with the minimum wage. Although marginally employed persons are subject to an earnings limit, they are also entitled to the minimum wage. It is advisable to implement a digital time recording system to ensure that this is not inadvertently undercut in the event of increased workloads. This enables employers to keep track of their employees' working hours at all times and avoid making mistakes.