Everything You Need to Know Before Starting a Mini-Job in Germany
After starting my PhD in Germany, I was interested in finding a part-time job to earn a little extra cash on the side. A mini-job position was the perfect balance for part-time employment with a near-zero tax liability. And I am not the only one to enjoy the benefits of this kind of marginal employment. According to recent reports, one out of every five working Germans are “marginally employed” with a mini-job. Are you interested in starting a mini-job as well? Here’s everything you need to know before starting a Mini-Job in Germany.
What is a Mini-Job in Germany?
A popular type of marginal employment, Mini-Jobs in Germany are positions where you earn 520 euros per month (or less) or short-term employment for a few weeks months. As such, there really are two classifications for a Mini-Job in Germany:
The traditional “mini-job” is a part-time employment position where you earn a maximum of 520 euros per month (or 6240 per year). The yearly cap is important, because it allows you to earn slightly more than 520 euros in individual months, and less in others - as long as it balances out over a six month average. Keep in mind - one-off payments such as a holiday bonus or work incentives will count towards the overall income.
The second, albeit less common, type of position is called quite literally “short-term employment” (Kurzfristigen Beschäftigung) in Germany. In these positions, you work less than three months or 70 working days per year. In this case, it doesn’t matter how much you earn during this time- but you must be only employed for a short time to count as a mini-jobber.
Who can Work a Mini-Job in Germany?
As we mention above, one out of every 5 Germans are employed in a mini-job position - either as their sole job or as a side-hustle alongside their full-time employment. Anyone with the right to work in Germany can take up a mini-job. Even international students may take up employment with a Mini-Job as long as the hours worked to not violate the terms of their student visa.
In addition, expats with a residence permit or a work visa may also take up a mini-job in Germany. Once more, we recommend checking with the terms of your visa before taking up additional or marginal employment in Germany.
From stay-at-home Moms and retirees who are looking to earn a little bit of extra spending cash, to University students looking for bar money - mini-Jobs in Germany can be enticing in many financial situations.
Mini-Job Taxes in Germany
The major benefit for you (and for your employer) is the significantly reduced income taxation on a mini-job in Germany.
If you are employed with a 520-euro Mini-Job, you are subject to a small flat-rate tax of 2% that your employer pays (called a “pauschale Versteuerung”). You are not personally liable for any other income taxes on your earnings - making Mini-Jobs particularly lucrative.
On the other hand, if you have a “short-term employment” position, you have a couple of options for taxes on your earnings. The first is another “flat-rate tax” of 25% (in addition to solidarity tax, and if applicable, church tax). Otherwise you can also pay taxes through what is called an income tax card (“Lohnsteuerkarte”). Generally speaking, this form of income tax will cost you less, since you are only liable for taxes on income earned above the substance income threshold (“Gundsicherung”). This threshold varies and is dependent on a number of personal factors such as age, number of dependents, and housing costs. You can use this calculator here to determine your “Grundsicherung”.
Mini-Jobs and Social Contributions in Germany
Another major benefit of a Mini-Job is that your earnings are exempt from most social contributions such as long-term care insurance, unemployment insurance, and health insurance. In addition, you can also ask to be exempt from the pension insurance (just ask your employer).
However, keep in mind that just because your earnings are exempt from paying the contributions doesn’t necessarily mean that you are out of the woods. By law, every person in Germany must have health insurance - including mini-jobbers. Since a mini-job doesn’t include social contributions, you will be responsible for finding another health insurance option.
Many mini-jobbers, such as students or spouses, are able to be insured through a family plan by another family member. This was the case for me. I was able to stay insured under Jonathan’s plan because I made less than 520 euros per month. However, if you are a single adult and a mini-job is your sole source of income, you must pay health insurance separately.
Where to find a Mini-Job in Germany
Interested in finding a mini-job in Germany? Depending on the sector and the target employee, mini-job position openings may be posted in a number of forums.
Are you a student interested in a mini-job in Germany? We suggest checking out your University’s Student Union. For example, at the University of Freiburg, their mini-job postings can be found here.
Working-adults who are interested in a commercial mini-job in Germany should check out local postings using regional forums. For example, in the Black Forest, Schwarzwald-jobs.de is a great resource for finding available mini-jobs.
Even LinkedIn can be a good resource to find a mini-job in Germany. In fact, that’s where I found the listing for my mini-job at an architecture firm.
For mini-job positions in private homes (such as a nanny (“Tagesmutter”) or housekeeper ), we suggest looking for available positions at the central site: MiniJob Zentrale.
Multiple Mini-Jobs in Germany
This all sounds good so far. So you may be wondering, can I have multiple Mini-Jobs in Germany?
The short answer: yes!
The long answer: but you might not want to.
While Mini-Jobs in Germany are enticing because of their lack of tax liability or social contribution - remember the earning cap of 520 euros per month (or 6240 per year). You can have two or three mini-jobs if you’d like. However, if you earn more than the earning cap per month (in a three month average), you are no longer considered a mini-jobber and will become liable for taxes and social contributions.
Having a Mini-Job and a Full-Time Job
Again, Mini-Jobs in Germany are a unique form of employment because of its versatility. Even if you have a full-time position at another employer, you can still take up a mini-job in Germany and not be liable for taxes or social contributions on the earnings made. Just make sure to clear it with your employer first.
However, there is a bit of a catch. As long as you only have one mini-job in Germany alongside your full-time position, you are exempt from taxes and social contributions on the marginal employment. Once you have multiple mini-jobs, the income will be assessed together in determining tax liability and social contributions.
