Working students - Wages, taxes and regulations 2024

Definition and delimitation

Working students are students who are employed alongside their studies and enjoy a special legal status: If they do not work more than 20 hours per week during the semester, they are still considered students and do not have to pay into health, long-term care and unemployment insurance.

In addition to the theoretical input of their studies, they can also gain practical experience in working life. During the semester break, they can also work full-time without losing their student status.

Working students are not interns: As a rule, they work for the company for a longer period of time, are actively involved in the company's daily work processes, contribute to specific projects or tasks and are always remunerated in accordance with legal standards.

Internships that are completed as part of a degree course, on the other hand, are often unpaid or only paid a small amount. The distinction between a working student job and an internship is relevant for the legal classification of employment relationships and the associated regulations in employment, social security and tax law.

In the best case scenario, the work of the student trainees is geared towards the content of their studies. This is the only way for companies and students to benefit equally: Companies gain young people who are interested in flexible employment; students gain an insight into the world of work and can effectively contribute to the fulfillment of company goals. In this case, working students can also have their work credited as a compulsory internship.

In order for students to be employed as working students, they must fulfill certain requirements:

• You must be properly enrolled at a university, college or recognized university of applied sciences.
• You must not be in a semester of leave.
• You must not yet have collected all the certificates, i.e. have completed all the required examinations.
• You must not have studied for more than 25 semesters.
• You may work a maximum of 20 hours per week during the semester.
• You may work more than 20 hours for a maximum of 26 weeks per year.

Working hours and working time recording

Working students are allowed to work a maximum of 20 hours per week during the semester. This is central to the definition of working students.

Exceptions are work during semester breaks, evening and night work and employment at weekends. These do not count towards the regular weekly working time limit - as long as they do not interfere with your studies.

However, these exceptions are also limited: Over the course of a year, working students may work more than 20 hours per week for a maximum of 26 weeks or 182 calendar days. If students exceed this limit, they lose their working student status and become fully liable for social security contributions.

Important: If students increase their working hours, for example during the semester break, employers must check whether the 26-week rule is complied with or whether an insurance obligation arises.

In this context, companies must pay particular attention to ensuring that the working hours of their working students comply with the provisions of the Working Hours Act (ArbZG) are in compliance. Among other things, this law regulates maximum working hours, rest breaks and rest periods between work assignments.

Recording working hours - particularly important for students

Employers must pay particular attention to the specific regulations for working students - such as the limit of 20 hours during the lecture period.

This not only serves to comply with legal requirements, but also to protect students so that they do not neglect their studies. Examinations regularly go in exactly this direction, especially if hourly rates are agreed that are above average.

Requirements for recording working time

• Working time recording system: Employers are obliged to record the working hours of their employees. It is important that the recording is complete, traceable and compliant with the law. With digital working time recording from Sawayo, you are on the safe side.
• Documentation: The working hours must be documented precisely, including the start, end and break times of the daily working hours. This also serves as proof of compliance with the regulations specific to working students.
• 20-hour rule: During the lecture period, working students may not work more than 20 hours per week. The recording and documentation of working hours must clearly show this.
• Full-time employment during the semester break: Working students are also allowed to work full-time during semester breaks. Here too, there must be a comprehensible system for recording student employees' time in order to document compliance with this regulation.

Working time recording - examples

• Calculation of hours: Suppose a working student works 22 hours in a week, which exceeds the 20-hour limit. In this case, the overtime could be posted to a working time account to be offset in another week in which less than 20 hours are worked. This must be done in accordance with the statutory provisions and taking into account the maximum permitted working hours.
• Example working time account: A working student regularly works 18 hours per week. During the examination period, he reduces his working hours to 10 hours per week. The difference of 8 hours per week could be collected in a working time account and reduced during the semester break, as long as the total working hours do not exceed the statutory maximum limits.

Salary and taxes

Like other employees, working students are also entitled to the statutory minimum wage. This will be 12.41 euros per hour in 2024.

Wage tax

If a working student's income is above the tax-free allowance, they pay tax on their income. The tax-free allowance depends on various factors, including annual income.

The basic tax-free allowance is relevant for working students. This is for the year 2024 is 11,604 euros. Students do not have to pay income tax below this amount.

However, it is important that income is added together: If a student has income from a mini-job and a working student job, for example, the sum of both incomes is relevant for the basic tax-free allowance. If the salary is above the basic allowance, tax must be paid. In this case, students should consider filing an income tax return. This allows them to deduct their costs for studies and further education, for example.

Tax laws can change quickly and individual circumstances vary. It is therefore advisable to consult a tax expert if you have any tax-related questions.

Social insurance for working students

Working students are exempt from health, long-term care and unemployment insurance exempt from insurance - as long as they do not exceed the 20-hour limit. However, they do pay into pension insurance. This is currently 18.6 percentwhich is split equally between the employer and the working student.

For companies, this means that working students incur lower social security contributions than regular employees. For students, this means "more net from gross", as these costs are also not incurred.

Compared to other student jobs, working students receive attractive remuneration in this way. The exemption from insurance only applies - as we have already guessed - as long as the weekly working time limit of 20 hours during the semester and the 26-week rule are adhered to. Otherwise, students lose their status and are fully liable for insurance. To ensure correct accounting and compliance with social security contributions, companies must keep accurate records of their employees' working hours.

It is important for students to note that they are not entitled to unemployment benefit I after completing their studies, as they have not paid into unemployment insurance as working students. If a student also receives BAföG, he or she should check whether working as a student trainee is really worthwhile, as the income earned is likely to exceed the BAföG allowances. This can lead to a reduction or even elimination of the BAföG entitlement.

Health insurance - statutory or via family insurance

In most cases, working students are insured under the statutory student health insurance scheme. This applies to students up to the age of 30 or until the end of the 14th semester. The contributions for this form of insurance are generally cheaper than the regular statutory health insurance contributions.

If working students are under 25 years old and their income from their job does not exceed 538 euros, they can also be insured free of charge through the family insurance of one of their parents.

In order to remain covered by the low-cost student health insurance or family insurance, working students are generally not allowed to work more than 20 hours per week during the semester. Full-time employment is possible during the semester break without losing health insurance status.

Child benefit

The amount of income of working students has no influence on the receipt of child benefit - as long as students do not work more than 20 hours per week and their status as a student is valid.

Mini job as a student

In a mini-job (up to 538 euros per month), students are treated in the same way as other employees and are exempt from social security contributions.

Bafög recipients

Bafög recipients can earn up to 538 euros per month without having to fear a reduction in their Bafög benefits.

Vacation entitlement

Like all other employees in Germany, working students are entitled to paid leave. This entitlement is based on the Federal Leave Act (BUrlG) and other labor law provisions. Here are the main points on working students' vacation entitlement:

1. Statutory minimum leave: Employees in Germany, including working students, are entitled to at least 20 days' leave per year based on a five-day week. If the number of working days per week is distributed differently, the minimum leave is adjusted accordingly.
2. Pro-rata leave: If working students are not employed for the whole year or their working hours change during the course of the year, their leave entitlement is calculated on a pro-rata basis. Working students earn one twelfth of their annual leave for each full month of employment.
3. Leave compensation: If the employment relationship ends before students have been able to take all their leave, they are entitled to compensation for the remaining days of leave.
4. No reduction for part-time work: Holiday entitlement may not be reduced simply because working students work part-time. The entitlement remains the same in relation to full-time employment as long as the days worked remain the same.

Home office - Can working students also work remotely?

In principle, working students can also work remotely, provided that the type of activity and the conditions of the workplace allow this. When working from home, make sure that you record your working hours appropriately.

Working student contract - what employers need to consider

When concluding a working student contract, employers must ensure that they both comply with the legal requirements and take into account the special conditions for working students. Here are the most important points:

1. Proof of enrollment: Students must be enrolled at a university and remain enrolled for the entire duration of their employment. Check your proof of enrollment regularly.
2. Working time limits: Working students may not work more than 20 hours per week during the semester. During the semester break, they may work up to 40 hours a week. The working student contract should define exactly how much a working student works during the semester and during the semester break. You should also check whether your student employees are already employed elsewhere and how this affects the 20-hour rule.
3. Social insurance: Working students are exempt from health, long-term care and unemployment insurance if they work less than 20 hours, but must pay pension insurance contributions. If they regularly exceed this limit, they are considered regular employees with full social insurance obligations.
4. Minimum wage: Working students are entitled to the statutory minimum wage. Make sure that this is actually paid.
5. Contract contents: The working student contract should clearly define the working conditions, tasks, working hours, salary and the start and end of employment. Notice periods and conditions should also be clearly regulated.
6. Equal treatment: Working students are entitled to the same treatment as other employees. This applies, for example, to access to company facilities or benefits, such as the company canteen or transport subsidies.
7. Fixed-term contract: Companies can employ working students on a fixed-term or permanent basis:- Fixed-term employment contracts offer a certain degree of flexibility, as they can be adapted to the student's course of study. For example, companies can tie a fixed-term employment contract to the duration of a semester or a specific project.
   - However, under German law, fixed-term employment contracts may only be concluded for a maximum duration of two years and may be extended or renewed a maximum of three times during this period.
   - If students are working for the company on a long-term basis or are providing continuous work that is required over a longer period of time, an open-ended student trainee contract is suitable.