German Panel Calls for End of Mini-Job Exemption as Coalition Approves Steeper Flat Tax on 6.8 Million Positions
Published on 07/09/2026 at 14:05 | Redaktion boerse-global.de
A government-appointed commission has recommended scrapping the special pension status of Germany's 6.8 million mini-job holders, arguing that the current exemption creates long-term financial vulnerabilities for low-wage workers. The proposal, which would make marginal employment fully subject to statutory pension insurance, includes a single exception for students.
The Alterssicherungskommission (Old-Age Security Commission) wants to eliminate the so-called Opt-out rule that currently allows mini-jobbers to waive pension contributions. If adopted, a worker earning the maximum monthly threshold of €603 would see net pay drop from that gross figure to approximately €475 — a cut of more than 20 percent. The sector most exposed would be food retail, which employed nearly one million marginal workers as of March 2026.
Parallel to the commission's long-term recommendation, the coalition's top committee approved a 34-point package earlier this month. The centrepiece: raising the flat-rate payroll tax on mini-jobs from 2 to 5 percent. Employers will bear the additional cost, with industry experts estimating an extra €18 per month for each position paying the maximum wage. Business groups warn that the total levy burden could climb from roughly 31 percent to above 35 percent, driven in part by a separate proposal from the Finanzkommission Gesundheit (Health Finance Commission) to lift the flat-rate health insurance contribution to 16.9 percent.
Amid these changes, the government has opened a one-time window for the roughly 6.8 million people in marginal employment who initially opted out of pension coverage. Starting 1 July 2026, they can retroactively reverse that decision and enter the state pension system. The move carries a cost: workers will pay 3.6 percent of their earnings — about €21.70 per month at the current €603 threshold. In return, they gain full pension entitlements.
The federal government has postponed a final decision on fully integrating mini-jobs into the pension system until autumn. A comprehensive pension reform is scheduled by the end of 2026, while any changes to tax allowances, such as higher exemption thresholds, are not expected before 2027.
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