Germany's pension commission proposes abolition of Minijobs, affecting 6.8 million workers

Since 2003, Germany has allowed "geringfügige Beschäftigung" or Minijobs, with a monthly earnings cap of 603 euros and no social security contributions from the employee. Now the country's pension commission recommends abolishing these jobs and folding them into the statutory pension system. The proposal has triggered a sharp divide between employer groups, who warn of business disruption, and labour unions, who back the change.

How many people are affected

According to the Minijob-Zentrale, 6,554,876 people held commercial Minijobs at the last count, plus 252,372 in private households, bringing the total to around 6.8 million. Nearly two-thirds of commercial Minijobbers are aged 24 to 64. The largest sectors are trade and hospitality.

Commercial (Gewerbe)

6554876

Private households

252372

Women make up 55.9% of Minijobbers and foreigners 18.3%. Collectively, Minijobs generated 1.3 billion euros in pension contributions and 1.02 billion euros in health insurance contributions in the first quarter.

Women

55.9 %

Men

44.1 %

Pension insurance

1.3

Health insurance

1.02

Pension insurance

1.3 bn €

Health insurance

1.02 bn €

What employers and unions say

The hospitality industry is especially alarmed.

The pension commission's proposals ignore operational reality and would be a catastrophe for the hospitality industry.

Employer groups broadly oppose abolition, while trade unions support it. CSU leader Markus Söder struck a cautious note:

Minijobs are a sensitive topic; we must not break china prematurely.

Expert views on the Minijob trap

Labour market experts have long criticised Minijobs. Andrea Nahles, head of the Federal Employment Agency, highlights the paradox:

Germany is among the European countries with high female labour force participation, but the number of hours worked by women is among the lowest on the continent.

She argues that Minijobs, like spousal income splitting, act as a state incentive to work few hours. Researcher Ulrich Walwei from the IAB noted in a 2021 Bundestag statement that Minijobs carry a high risk of low wages and poverty, displace regular employment, and only rarely serve as a bridge into social-insurance jobs.