Overview
- The government has proposed raising the employer Pauschalsteuersatz on minijobs from 2% to 5% and will decide in the autumn whether to make pension contributions mandatory for minijobbers.
- Labour market expert Ulrich Walwei called the package “half‑hearted” and said the tax rise would add about €18 a month in employer costs at the current €603 earnings limit while not cutting net pay for workers.
- Walwei estimated that if minijob volumes hold steady the tax increase could bring roughly €500 million to €1 billion a year in state revenue.
- Major industry associations sent a joint letter urging the government to keep minijobs unchanged, warning that higher employer costs would reduce flexibility for businesses in sectors like retail and gastronomy.
- Critics and some scholars argue the measures do not fix weak transitions into regular work or the crowding out of social‑insurance jobs in small firms, and they say stronger reforms should be paired with support such as expanded childcare to avoid pushing vulnerable workers into informal work.