German Pension Panel Proposes Major Limits on Minijobs
The advisory Rentenkommission wants to fold low‑hours jobs into statutory pensions to raise social protection for low‑paid workers.
Overview
- This week the Rentenkommission published proposals to push back Minijobs and treat low‑hours work more like regular employment under the statutory pension system.
- Official Minijob‑Zentrale figures show about 6.55 million people in commercial Minijobs plus 252,000 in private‑household Minijobs, with women making up a majority and employers paying €1.3 billion in pension and €1.02 billion in health contributions in Q1.
- Research from the Institut für Wirtschaftsforschung Halle estimates that converting Minijobs into regular jobs could leave roughly four million workers about €130 less net per month at first, creating immediate income risks for many who use Minijobs as a main or supplemental earning.
- Political and social actors are split: SPD, Greens and Die Linke back major change or abolition, AfD wants expansion, the Union is divided, employers warn of costs and lost flexibility, and unions press for stronger social protection.
- The Rentenkommission’s measures are advisory only; lawmakers still must decide on exemptions, compensation rules and implementation details as debates focus on trade‑offs between higher pension accrual and risks of lower take‑home pay, job losses or informal work.