Germany moves to abolish tax‑free minijobs, affecting 7 million workers

Germany's pension commission has recommended ending the special tax‑free status of minijobs, a form of low‑hour, low‑pay employment that currently allows workers to earn up to €603 per month without social‑security contributions. The proposal would integrate these jobs into the statutory pension system and subject employees to full social‑insurance contributions. As a result, net earnings for minijobbers could fall to roughly €475 per month.

Around 6.5‑7 million people are currently employed in minijobs, the majority in retail and hospitality, with women comprising about 56 % and 18 % being foreign nationals. Employers currently pay a flat rate of about 30 % of wages for pension and health insurance, while employees pay nothing. Employers argue the flexibility of minijobs is essential for seasonal staffing, whereas trade unions and the SPD see the reform as necessary to reduce low‑wage traps and improve social protection. The plan has sparked heated debate ahead of its legislative implementation.