Experts Want to Scrap the Minijob in Germany
4 min read
Germany's government advisers want to end the minijob as it exists today. The Sachverständigenrat, the five "Wirtschaftsweise" (wise economists) who advise the federal government, handed its annual report to Chancellor Friedrich Merz on Wednesday, 11 November 2026. In it they recommend largely abolishing the minijob, the low-paid job that is free of tax and social contributions for employees. This is only advice: nothing is decided, and your current arrangement is unchanged.
What the experts say about the minijob
About seven million people hold a minijob, which has a monthly earnings cap. The Berliner Kurier, citing official figures, counts 6,959,301 workers in this scheme on 30 June 2026. The experts want most of these jobs moved into regular employment with social insurance. Council chair Monika Schnitzer told t-online: "Minijobs sind keine Dauerlösung", meaning minijobs are not a lasting solution. She argues that they subsidise certain sectors, and that they reduce the total hours worked and the contributions paid.
The council sees one clear exception. Schnitzer considers these jobs acceptable for pupils and students, according to t-online and Berliner Kurier. The report follows a recommendation of the pension commission, which proposed in June to end their special status. Telepolis points out that the commission itself named only school pupils as an exception, so it is not yet clear whether students would be covered in a law.
Why the experts also target Ehegattensplitting
The same report calls for ending Ehegattensplitting, the tax advantage for married couples that is largest when one partner earns much more than the other. Telepolis and t-online also list better childcare and more targeted recruitment of foreign skilled workers among the recommendations. The idea behind the package is that second earners in couples, mostly women, have little reason to work more. ZDF reported in October that Schnitzer names three such disincentives: tax splitting, free health insurance for spouses and low-paid jobs.
Workers in this scheme pay no health, care or unemployment insurance contributions, and they can opt out of pension insurance, t-online notes. That keeps their pensions small, and the experts see a high risk of poverty in old age for people who stay in these jobs for years. Women make up most of them, partly because they care for children or relatives.
Who supports and who opposes ending the minijob
The trade union federation DGB supports the plan and wants employers to convert these positions into regular jobs step by step. The hospitality association Dehoga warns of higher costs and closures, and retail groups say that replacing them with full jobs is hardly realistic, according to Telepolis. Bavarian CSU leader Markus Söder said in July: "Die Minijobs bleiben", so minijobs will stay.
Merz says he wants to carry out the pension reform as agreed, but it is unclear whether that includes ending this job status. The government wants to present its first pension reform laws by the end of the year, t-online reports, and it plans to respond to the council's report in early 2027.
What applies to your minijob now
Today the earnings limit is 603 euros a month, or 7,236 euros a year. On 1 January 2027 it rises to 633 euros a month, or 7,596 euros a year, because the limit is tied to the minimum wage, dpa reported in October. The statutory minimum wage rises from 13.90 euros to 14.60 euros per hour on the same day, as we reported in our article on the record minimum wage increase. At 14.60 euros an hour, the new limit still allows about 43 working hours a month.
Employers pay a flat rate of just over 30 percent on this type of job. Anyone who regularly earns above the limit moves into a normal job with contributions, though going over the limit is allowed occasionally, in up to two months a year.
The new forecast behind the report
The annual report also brings a more positive growth forecast. The council now expects the economy to grow by 1.3 percent in 2026 and by 1.0 percent in 2027, up from 0.5 and 0.8 percent in its spring report. Inflation is expected to be 2.8 percent in 2026 and 3.3 percent in 2027, mainly because of higher energy prices, according to the council and t-online. See our overview of energy prices in 2027 for what this means for your bills.
Schnitzer also warned that the federal budget cannot keep growing as it has, and that spending in the budget and social insurance would clearly exceed income in the medium term. That is the reason the experts push for pension and tax reforms, including this job scheme.
What the minijob debate means for students and expats
If you have a minijob, keep it as it is: nothing changes before a law is passed. If you are a student, the experts' proposal appears to leave your job alone, but a final law could draw the line differently, so keep an eye on the news.
Expats who rely on a minijob as their main income should check their health insurance, because this work alone does not give you cover. Many people are insured through a spouse, which Schnitzer also counts among the financial disincentives. Keep your contract and payslips, watch the 633 euro limit from January, and ask your employer early how a possible change would affect your pay. Check that your residence permit allows you to work the hours you do.
