Germany retains Minijobs, raises flat tax to 5%

The coalition committee’s July 2026 program for growth and employment confirms that Minijobs will not be abolished in Germany. The only change is an increase of the employer’s flat tax contribution from 2 percent to 5 percent, while wages and employee obligations remain unchanged. About 8 million people are currently employed in Minijobs, many of them in retail, gastronomy and agriculture.

The FDP backs the decision, with party chairman Wolfgang Kubicki stating, “Minijobs must stay – in the interest of the economy and the people.” He warned that eliminating the jobs would affect roughly seven million workers and hurt key sectors. The party also calls for a higher earnings ceiling and a simplified tax system.

Employers may legally shift the higher tax onto employees, but this practice is rare. The reform is part of a broader 34‑measure package that also includes data‑protection changes and other labour‑market measures.