The pension commission’s proposal to abolish mini‑jobs could reshape Germany’s low‑wage labor market and boost pension contributions
Executive summary: The German pension commission recommended abolishing the mini‑job (Minijob) scheme, which currently allows workers to earn up to €520 per month with reduced tax and social‑security contributions. Mini‑jobs employ millions in retail, hospitality and other low‑wage sectors; ending the scheme would alter labor costs, potentially increase regular employment, and affect pension‑fund inflows. German federal pension commission, Federal Ministry of Labour and Social Affairs, employer associations, low‑wage workers and mini‑job holders. Bundestag debate on mini‑job abolition expected in Q3 2026, possible pilot transitional schemes in selected states, and monitoring of impacts on part‑time employment and pension contributions.
The German pension commission has recommended ending the mini‑job scheme, a low‑hour, low‑tax employment form that employs millions of low‑wage workers. Abolishing it would raise labor costs for sectors reliant on marginal work and could shift many workers into regular part‑time or full‑time contracts, affecting both payroll expenses and social‑security revenues. While employers may face higher costs, the move aims to strengthen the pension system by broadening the contribution base.
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