From July, German Mini-Jobbers Can Reverse Their Decision to Opt Out of Pension Insurance
13.06.2026 - 04:33:57 | boerse-global.de
People earning up to 603 euros a month in a German mini-job will be able to reverse their previous decision to forgo pension contributions starting 1 July. Until now, an application for exemption from compulsory pension insurance was binding for the entire duration of the employment.
The reversal must be submitted in writing to the employer and can only take effect going forward. Once revoked, a fresh exemption is permanently ruled out. Workers who choose to opt back in will pay 3.6 percent of their wages into the state pension system, while the employer adds 15 percent on top. Full retirement pensioners are generally exempt from pension insurance but can voluntarily waive that exemption and pay contributions to boost their future benefits.
Higher Minimum Wage Drives the 603?Euro Ceiling
Germany’s statutory minimum wage rose to 13.90 euros an hour on 1 January, automatically lifting the earnings threshold for tax?free mini?jobs from 556 to 603 euros a month. That works out at a maximum of 7,236 euros tax?free per year and, at the new minimum wage, allows roughly 43 hours of work per month.
Anyone whose monthly earnings exceed 603.01 euros moves into the midi?job bracket, which currently ranges up to 2,000 euros. Exceeding the ceiling is permitted in up to two months per year. Multiple mini?jobs held simultaneously are added together, so crossing the 603?euro mark with a combination of jobs also shifts the worker into the midi?job zone.
Retail Lobby Warns of €1.6 Billion Additional Burden
The German Retail Association (HDE) has raised the alarm over a draft bill aimed at stabilising the statutory health insurance system. The proposal would raise the flat?rate employer contribution for mini?jobs from 13 percent to 17.5 percent. HDE President Alexander von Preen said this would translate into an extra burden of around 1.6 billion euros per year for businesses.
Von Preen stressed that the retail sector relies heavily on mini?jobbers to cover demand peaks flexibly. Separate legislation, the planned Long?Term Care Reorganisation Act, would introduce a new flat?rate contribution to long?term care insurance of 3.6 percent, to be borne entirely by the employer.
Top Social Court Clarifies Rules on Sidelined Jobs During Unemployment Benefit
The Federal Social Court (BSG) ruled on 3 June that failing to disclose a sideline job while receiving unemployment benefit (Arbeitslosengeld I) does not automatically render the unemployment registration invalid (case reference B 11 AL 1/26 R). Authorities must examine each individual case to determine whether the conditions for unemployment – in particular, a working week of fewer than 15 hours – were still met. Blanket demands for repayment without such a check are illegal, though recipients’ obligation to report remains unaffected.
Austria Freezes Threshold, Raises Employer Levy
While Germany indexes its mini?job ceiling to the minimum wage, neighbouring Austria is taking a different direction. The federal government plans to freeze the threshold for minor?employment earnings in 2027 as part of a broader savings package worth around 200 million euros on the labour market. The employer levy for such jobs is set to rise from 19.4 percent to 23 percent. Workers over the age of 63 will also be required to pay unemployment insurance contributions until they actually enter retirement.
