Germany: Changes to Minijob taxes and earnings limits for 2027

Germany is preparing for significant changes to the 'Minijob' employment model starting in January 2027. According to a government draft law currently before the Bundestag, the flat-rate tax for these marginal jobs is set to increase from 2 percent to 5 percent.

Simultaneously, the monthly earnings limit for Minijobs will rise to 633 euros. This increase is a direct consequence of the statutory minimum wage rising to 14.60 euros per hour. This adjustment ensures that the threshold for marginal employment remains logically linked to the minimum wage, though it will also shift the transition point into 'Midijob' status.

The legislative process is ongoing, requiring approval from both the Bundestag and the Bundesrat.