Germany's pension reform tightens rules for minijob workers

Germany's pension reform now makes pension insurance compulsory for most minijob holders. Workers earning up to €603 a month and working ten hours or less must pay the full social‑security contribution, which will be deducted automatically by employers. The change aims to close pension gaps for the roughly seven million people in low‑wage, part‑time jobs and to strengthen the long‑term stability of the pension system.

Political leaders from the SPD and trade unions support abolishing the special tax and contribution status of minijobs, arguing that the reform will prevent future old‑age poverty. Critics warn that the added contributions could reduce net earnings by about a fifth, cutting take‑home pay from around €603 to roughly €475. The debate centers on balancing broader social security with the flexibility that minijobs provide for employers and employees.