Working Life > Modes of Working > Minijob

Minijob, Marginal Employment or 400-Euro Job

Definition, Explanation

Minijobs are marginal employment where the earnings level does not exceed 400 euros. This kind of employment is tax-free and non-accessible for the employee. For this reason they are well-liked as a secondary job. The employer pays a lump sum of 30 % (health insurance 13, pension fund 15, wage tax 2 percent as of 1^st July 2006) or 12 percent in the case of domestic help for the pension fund and health insurance to the Knappschaft Bahn See (insurance association). A minijob can also be carried out during the six weeks of maternity leave prior to giving birth and during parental leave. However, the parent taking parental leave is not allowed to work more than 30 hours a week.

Christmas bonuses or holiday pay may mean the 400-euro limit is exceeded. In this case, the employer has to pay tax on this income.

Pursuing a minijob is also a way of moving from unemployment into a permanent job. Some employees and employers regard a minijob as a way of getting to know each other before a placement follows. Earnings from a minijob are added on to unemployment benefit. A maximum of 20 percent of the unemployment benefit received can be earned in addition without there being a deduction. Unemployment benefit is no longer paid in the case of working more than 15 hours a week, as the recipient is no longer unemployed.

If the total monthly income is between € 400 and € 800, then these are so-called low-wage jobs that are treated in a different way concerning taxes and national insurance. Several low-waged jobs are totalised.

The social security contribution seiling for the pension fund is 155 euros per month for minijob employer, the minimum premium 30,85 euros per month.

Last update: 08/03/2010