Around 8 million Germans work mini-jobs and, for most of them, they are their only source of income. Although this model – known as “minor employment model” – is heavily criticised, its success from an economic perspective has motivated other European countries to consider it as an option. Mini-jobs are
But, what is a mini-job? What about health insurance? Can a minijobber get fired?
In this post I try to answer all your questions. Let’s go!
What are mini-jobs?
A mini-job is any form of employment with an average monthly payment of no more than €450.
Although mini-jobs are typically related to cleaning jobs, they can also come from agencies, startups, language schools and larger companies looking for part-time help.
Which are the pros?
- Minijobbers – people who have a mini-job contract – with no alternative source of income pay zero taxes on earnings up to €450
- The state covers the minijobber’s social and health insurance
- All minijobbers have the same rights as other employees, meaning that “same rights” apply on holiday and sick pay, as well as on maternity leave
- Minijobbers can take on another side job
Which are the cons?
- Minijobbers are usually paid a lower wage than fully employed colleagues
- To improve emplyoment statistics – you may have heard that the unemployment rate in Germany is around 4% – politicians count minijobbers as regular working people
- It can be difficult to turn a mini-job into a full-time job.
Who benefits from this kind of job contract?
For minijobbers, a mini-job is always a good opportunity to earn some money – the €450 arrive always to the person’s bank account with tax deducted already – and get some experience in the German market.
There are my students that work as minijobbers while studying just to get some extra money. At the same time, many expats use this system to try working in a multicultural environment until they feel secure enough to work for a large company.
For employers, a mini-job is a good deal to save some money – they do not have to pay for insurance obligations – and to hire motivated professionals. A good example of this are startups companies. Most of them use this system to hire people until they have enough earnings to pay for higher salaries.