Mini job

What is a mini-job?

A mini-job is a form of part-time work where the income may not exceed a certain income limit. Whether an employment is a mini-job depends solely on the monthly earnings. If the pay does not exceed 520 euros per month (450 euros until September 2022), it is a mini-job.

The mini-job has several names: marginal employment, marginally paid employment and with the increase in the minimum wage to 12 euros/hour since October 1, 2022, the 450-euro job has virtually become a 520-euro job.

This form of employment is particularly suitable for short-term and flexible working relationships during school time, during studies, as additional employment alongside the main job, during retirement and/or during periods of unemployment.

Mini-jobs can be found in various industries and professions, such as retail, catering, office work, tutoring, events and promotions and many others.

Taxes and social security contributions for mini-jobs for the employer

The employer must pay flat-rate social security contributions for an employee in a mini-job:

• 13% Health insurance
• 15% Pension insurance
• Levy U1/U2
• Insolvency money levy

Overall, the employer’s contribution for a mini-job is around 30%. This means that a mini-job is slightly more expensive for employers than a regular employment relationship subject to social security contributions with around 20% employer contributions.

However, there are also positive aspects to mini-jobs. Wage tax can be paid at a flat rate for mini-jobs. In addition to wage tax, the 2% also includes flat-rate church tax and solidarity surcharge (uniform flat-rate tax). The employer can pay the flat-rate wage tax.

Alternatively, the income tax for a mini-job can also be calculated according to the income tax class. If the mini-job is the only employment, then tax class 1-5 applies, depending on the employee’s circumstances. With tax class 1 – 4, no income tax is payable up to 520 euros.

Further important information for the mini-jobber

Gross = Net
Tax and social security contributions can be paid by the employer as a lump sum. Employees thus receive their earnings “gross = net”. This means that the mini-jobber enjoys certain tax advantages.

Declaration of consent from the main employer:
Anyone who wants to take on a mini-job in addition to their main job subject to social insurance contributions needs the consent of their main employer.

Number of permissible mini-jobs
A mini-job can be carried out alongside a regular main job that is subject to social insurance contributions. However, it is not possible to have more than one mini-job alongside a main job. In this case, all additional jobs must be accounted for as activities subject to social insurance contributions, apart from the first mini-job.

Pension insurance obligation or exemption
Mini-jobbers themselves pay 3.6% of their pay as a pension insurance contribution or can waive the pension insurance obligation. In this case, the employee does not have to pay any contributions. The waiver of the pension insurance obligation must be declared in writing for the mini-job. The waiver applies from the month in which the declaration is submitted. It is best to declare directly when hiring a mini-jobber whether the employee wishes to pay their own pension insurance contributions or not.

If a mini-jobber pays their own pension insurance contributions, the mini-job is fully taken into account in the pension calculation. As the remuneration is limited to 520 euros, there is only a correspondingly low pension entitlement. However, the employment is fully counted towards the contribution periods. A mini-job subject to pension insurance can therefore be useful to make up for missing contribution periods.

Disadvantages compared to employment subject to social insurance contributions

Entitlement to unemployment benefit
If someone has a mini-job, there is no need to pay unemployment insurance contributions. However, this is one of the fundamental disadvantages of a mini-job, as mini-jobbers are not entitled to unemployment benefit.

Pension entitlement
For people who have worked exclusively in mini-jobs and were exempt from pension insurance, this means that they have no pension entitlements at the end of their working life. In many cases, this means that mini-jobbers are at an increased risk of poverty in old age.

Health and long-term care insurance
Although employers pay flat-rate social security contributions for mini-jobs, this does not automatically mean that mini-jobbers are covered by health and long-term care insurance. Only when the income exceeds the limit of 520 euros are employees required to pay health and long-term care insurance and thus obtain insurance cover.

As long as their monthly income is below 520 euros, mini-jobbers must take care of their health insurance themselves. They have various options:

• Compulsory insurance in the statutory health insurance scheme
• Non-contributory family insurance
• Voluntary health insurance (statutory or private)

For recipients of unemployment benefit who have a mini-job, the employment agencies pay the contributions to health and long-term care insurance. This applies as long as there is an entitlement to benefits.

Employment law for mini-jobs
According to the Part-Time and Fixed-Term Employment Act, mini-jobbers are considered part-time employees. They therefore have the same rights in employment law as full-time employees. This includes

• Protection against dismissal
• Vacation entitlement
• Continued payment of remuneration in the event of illness
• Remuneration on Sundays and public holidays
• Maternity benefit
• Preparation of an employment reference
• Statutory accident insurance in the event of an accident at work or on the way to work
• Special protection for severely disabled people.

Vacation entitlement
Like other employees, mini-jobbers are entitled to vacation. How many vacation days they are entitled to each year depends on how many days they work per week. This is how vacation entitlement is calculated: Individual working days per week x vacation entitlement in working days ÷ usual working days.

Opportunities and benefits for mini-jobbers in promotion and hostess agencies

Flexibility
Events in the event industry vary greatly in terms of date, location and duration. Mini-jobbers enjoy the freedom to accept jobs according to availability, which is attractive for both students and people with other commitments.

Diverse experiences
Mini-jobbers have the opportunity to work in various roles such as hostesses, promoters, event supervisors and more. This diversity allows them to gain a wide range of skills and experience that can have a positive impact on their professional development.

Contacts and networking
In the event industry, mini-jobbers often make valuable contacts with colleagues, customers and representatives of other companies. This networking can open up long-term career opportunities and build valuable relationships.

Overall, mini-jobs in promotion and hostess agencies offer an opportunity to enter the exciting world of the event industry. With the right approach, mini-jobbers can gain experience, make valuable contacts and develop their careers.

Alternatives to a mini-job can be

• Short-term employment
  Take a look at our encyclopaedia article on the topic of short-term employment: https://www.teamhero.de/hr-lexikon/kurzfristige-beschaeftigung/
• Midijob or Gleitzonenjobs
  Here is the encyclopedia article on the topic of midijobs: https://www.teamhero.de/hr-lexikon/midijob/