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As part of the increase in the minimum wage to 12 euros on October 1, 2022, there will also be adjustments to mini- and midi-jobs. In addition to the mere increase in earnings limits, there will also be completely new regulations.
With the "Act on Increasing the Protection Provided by the Statutory Minimum Wage and on Changes in the Area of Marginal Employment," the changes to the minimum wage and to marginal employment and employment in the transitional area will come into force on October 1, 2022. We summarize what will be regulated for mini- and midi-jobs.
- The dynamic marginal earnings threshold
- Unforeseeable Exceeding of the Marginal Earnings Limit
- New maximum limit and formulas for transitional employment
- New contribution burden distribution in the transitional area
- Protection regulations for old midi-jobbers up to 520 euros
The dynamic marginal earnings threshold
In the future, the marginal earnings threshold will be based on a weekly working time of ten hours at minimum wage conditions.
Accordingly, it will be increased to 520 euros per month when the statutory minimum wage is raised to 12 euros per hour and will be dynamic.
Unforeseeable Exceeding of the Marginal Earnings Limit
What was previously only regulated in the marginal earnings guidelines as part of the interpretation by the top social insurance organizations has now been standardized by law:
The possibility of a permissible unforeseeable exceeding of the earnings limit. However, this regulation is severely restricted in order to avoid abuse.
New maximum limit and formulas for transitional employment
The maximum limit for employment in the transitional area is raised from 1,300 euros per month to 1,600 euros. The lower limit will then start at 520.01 euros.
The formula for determining income subject to contributions, which is used to calculate the total contribution for each insurance class, will be adjusted. At the same time, a new formula will be introduced for calculating employee contributions alone.
New contribution burden distribution in the transitional area
The measures in the transitional area provide further relief for employees with low wages who are subject to social insurance contributions than the current midijob regulation. This is intended to smooth out the jump in the burden during the transition from minijob to midijob and increase the incentive for minijobbers to extend their working hours beyond the minijob limit.
At the same time, employers will initially be burdened more than before, in that the employer's contribution above the marginal earnings threshold will initially be aligned with the flat-rate contributions of 28 percent to be paid for a mini-job, and then gradually melted down to the regular social security contribution.
Protection regulations for old midi-jobbers up to 520 euros
Employees who are midijobbers with an average monthly salary of up to 520 euros on September 30, 2022, will remain subject to compulsory health, long-term care, and unemployment insurance under the old midijob conditions until December 31, 2023, at the latest due to grandfathering provisions. Exemption from compulsory insurance can be applied for. In pension insurance, this only applies to employment in private households.