German Plan to End Tax-Free Mini-Jobs for Adults Sparks Bitter Opposition from Hospitality and Handwerk
28.06.2026 - 19:50:48 | boerse-global.de
A coalition-backed push to scrap the tax-free status of Germany’s “mini-jobs” for most workers has drawn sharp criticism from the hotel, restaurant and crafts sectors, even as economists and unions insist the change is essential to curb old-age poverty.
The proposal, unveiled on 27 June by the government’s pension commission, would eliminate the social-security exemption for almost all mini-jobs – currently limited to earnings of €603 a month. Only school pupils would continue to enjoy the privilege. Around 6.8 million people currently hold such positions, and the reform would also affect so-called midi-jobs (earning between €603 and €2,000), which would become fully subject to social insurance contributions.
The commission—whose report was handed to Chancellor Friedrich Merz and Labour Minister Bärbel Bas—contained 33 measures designed to shore up the pension system. The government signalled it intends to implement the recommendations.
Restaurant and crafts leaders mobilise
The German Hotel and Restaurant Association (Dehoga) said the plan would hit its sector especially hard. With about 1.1 million people working on mini-job contracts in hospitality alone, managing director Ingrid Schimke promised “determined opposition.” She noted that employers already pay flat-rate contributions of 15% toward pension insurance and 13% toward health insurance.
The crafts sector also cried foul. Kai-Uwe Dittrich, president of the German Confederation of Skilled Crafts, warned that the added burden—labour on-costs already approach 43% of wages—would drive a surge in undeclared work. Still, Dittrich backed other elements of the commission’s package, including abolishing the “pension at 63” early-retirement option.
Support from science and labour
The reform found allies among researchers and worker representatives. Monika Schnitzer, one of Germany’s “economic wise” experts, called mini-jobs a “dead end” that especially traps women in low retirement income. The current rules, she argued, effectively subsidise entire industries.
Guido Zeitler, head of the Food, Beverages and Catering Union (NGG), agreed, saying mini-jobs cement precarious employment. The Social Association of Germany (SoVD) underlined the long-term damage such work does to women’s pension records.
Political fault lines emerge
CDU general secretary Carsten Linnemann defended the plan on Sunday, stating that extending pension-insurance coverage to mini-jobs is necessary to keep the system stable. He did not rule out a tax increase on high earners to finance the changes.
Opposition came from former finance minister Christian Lindner (FDP), who said he would not support the package in its current form. He specifically rejected the inclusion of self-employed workers and the planned increase in pension contributions via a capital-funded component.
The coalition committee is expected to debate the proposals on 1 July, while the government aims to pass a parallel health-care reform by 10 July. For millions of mini-job holders, the outcome could mean a fundamental shift in their working lives.
