New rules for people with mini-jobs

IN THE FUTURE, THE INCOME LIMIT WILL INCREASE FROM 400 TO 450 EUROS

As of January 1, 2013, the earnings limit for mini-jobbers was raised from 400 to 450 euros per month. In addition, the previous option to supplement pension insurance will be converted into a mandatory insurance requirement.

MINI-JOB HOLDERS: FULL INSURANCE OBLIGATION

Low-wage workers can now earn up to 450 euros per month starting January 1, 2013, instead of the previous limit of 400 euros. At the same time, mini-jobbers are subject to full mandatory coverage under the statutory pension insurance scheme. The portion to be borne solely by the mini-jobber is 13.9 percent for employment in a private household and 3.9 percent in all other cases. This is calculated as the difference between the employer’s flat-rate contribution—5 percent for private households and 15 percent otherwise—and the full contribution rate of 18.9 percent. The full rate of 13.9 or 3.9 percent is payable on earnings of at least 175 euros.

ADVANTAGES OF PAYING THE FULL CONTRIBUTION

If the mini-jobber tops up their pension insurance contributions, the earnings are taken into account not just proportionally but in full when calculating the pension. Furthermore, the entire period of employment counts toward fulfilling the waiting periods. These periods are decisive, for example, for a disability pension, for claims to rehabilitation, or for a potentially earlier pension start date.

APPLICATION FOR EXEMPTION FROM MANDATORY PENSION INSURANCE

Minijobbers can be exempted from the insurance obligation if they notify their employer in writing. These regulations apply to individuals who take up marginal employment for the first time on or after January 1, 2013. They also apply to existing marginal employment if the earnings limit of 400 euros is exceeded.

Example 1: A part-time worker earned up to 400 euros before 2013 and does not exceed this limit afterward: Nothing changes. As long as the 400-euro limit is not exceeded, the employee can continue to enjoy the current exemption from insurance, which they can convert into mandatory insurance upon request, just as they can now.

Example 2: A person in a mini-job earned up to 400 euros before 2013 and subsequently earns more than 400 euros: The new law applies to this employment starting in 2013. The mini-job, which was previously generally exempt from insurance, automatically becomes subject to mandatory insurance. However, the mini-jobber can apply for an exemption from this.

Contribution rates for mini-jobbers starting in 2013