Mini-Jobs in Germany

Information about the German Mini Job system: tax for minijobbers, how to set up a minijob arrangement, and how to pay...

What are Mini-Jobs?

Mini-Jobs are a part-time form of employment where the monthly salary cannot exceed €450 per month. The scheme is coordinated by the Minijob-Zentrale and exists primarily for domestic household workers, such as cleaners and gardeners; Minijob-Zentrale provides an extensive list of what arrangements qualify as mini-jobs. (PDF)

How to Set Up a Mini-Job Arrangement

For private households, the best way to register a mini-job agreement between employer and employee is with a Haushaltsscheck, a form which is filled out by the employer and signed by the employee. Three copies of the form are made; one is kept by Minijob-Zentrale, one by the employer and one by the employee.

The Haushaltsscheck forms the basis of calculating national insurance contributions, levies and taxes. Minijob-Zentrale deals with the calculation and collection of taxes, as well as the payment of accident insurance; filling in the Haushaltsscheck form enables these to be paid via a SEPA direct debit.

If wage amount is different from month to month then the employer must complete a half-year check (Halbjahresscheck). They must keep a monthly record of payments and give evidence of them. The employer receives a half-year check automatically if they have already informed Minijob-Zentrale about the inconsistent wages in the Haushaltcheck form.

Compulsory Payment to the Pension Scheme

It is compulsory for both employee and employer to pay towards the pension scheme. In private households the rates are as followed:

  • Employer must pay 5%
  • Employee must pay 13.9%

Other Things to Note

Employer Insurance

Mini-jobbers are entitled to still receive pay in the case of illness or maternity leave, providing the working relationship has been established for longer than four weeks (28 calendar days). Employers must only pay a percentage towards this pay and are compensated for the rest:

  • For illness – 0.70%
  • For maternity – 0.14%

Knappschaft Bahn See provide more information about employer insurance and how to claim compensation.

Accident Insurance

An accident insurance contribution of 1.6% of the wage is taken twice a year by Minijob-Zentrale, which then passes it on to the relevant insurance company. The employee will be told by Minijob-Zentrale which insurance company they are covered by.

Taxation of Wages

The employer can choose how they want to pay tax on the wages. There are two options:

  • They can pay a flat rate tax of 2%. This is paid, together with the other contributions, to the Minijob-Zentrale. The employer also has the possibility of passing the tax onto the employee by deducting it directly from their salary.
  • Alternatively, the income tax can be paid according to the income tax features that are laid down by the responsible tax office. In this case the amount of income tax depends on the tax bracket. With tax brackets I to IV for the wages of small-paid employment there is no income tax; however, this is not the case for tax brackets V or VI.

The Minijob-Zentrale has a detailed page explaining the tax law of minijobbing on their website.

Minijobbers are covered by the Teilzeit- und Befristungsgesetz (TzBfG) as a part-time worker, and employers should therefore adhere to the labour law principles. The Federal Ministry of Justice and Consumer Protection (Bundesministerium der Justiz und für Verbraucherschutz) has a document (PDF) outlining these principles.