New German Commission Report Warns 7 Million Minijobbers Face €130 Monthly Pay Cuts
01.07.2026 - 00:40:48 | boerse-global.de
A German government-appointed pension commission has recommended stripping the country’s 7 million “Minijob” workers of their special social-security exemption, a move that would slash take-home pay by roughly €127 to €130 per month for employees earning near the current ceiling.
Minijobs, a cornerstone of Germany’s low-wage labor market, currently let workers earn up to €603 monthly without mandatory pension contributions. Those who opt out of the state pension system keep almost the full gross amount. Under the commission’s 33-point plan, that would change: net income would shrink to about €475, according to calculations by the commission and the Halle Institute for Economic Research (IWH).
The proposal hits hardest at the country’s most vulnerable part-time earners. Of the estimated 6.8 million to 7 million affected Minijobbers, roughly 4.2 million hold such positions as their only job. The remainder use them as side gigs. Retirees make up 1.2 million of the total, and women—who account for more than 55% of all Minijob workers—face disproportionately larger impacts. The commission wants to preserve exemptions only for school pupils; students, parents on parental leave and pensioners would all be required to pay full social-security contributions.
Employers push back on cost increases
Business groups are fighting the overhaul. Currently, commercial employers pay a flat-rate levy capped at 31.17% on Minijob earnings; private households pay 14.62%. Converting Minijobs into fully insured positions would drop the employer share to roughly 21%—but experts predict pressure to raise gross wages to offset employees’ net losses.
The Treuhand Hannover consultancy calculated the extra cost for a pharmacy at €110 to €120 per Minijobber each month. The German Hotel and Restaurant Association (Dehoga) calls the plan existentially threatening for many businesses. The German Retail Association (HDE) labels it a “dangerous wrong turn.” Roughly 1 million Minijobbers work in retail and over 870,000 in the hospitality sector; both industries warn of acute labor shortages and a surge in undeclared work. The Social Insurance Trade Union (BDZ) even cautions the reform could amount to a stimulus program for illegal employment.
Coalition politics cloud timeline
Chancellor Friedrich Merz has promised to introduce legislation by 2026, but resistance is mounting from Germany’s federal states. Bavaria’s premier Markus Söder rejects the plan outright, warning of damage to the restaurant and tourism sectors. Doubts also exist within the Social Democrats (SPD).
Supporters argue the current system traps workers in precarious old-age poverty. Silke Übelmesser, a pension expert and commission member, says Minijobs act as an “earnings trap,” especially for women. About 80% of Minijobbers currently use the opt-out clause, building almost no pension claims. The youth wing of Merz’s Christian Democratic Union backs the reforms, citing the long-term health of the pension fund.
The Minijob proposal is only one part of a larger pension overhaul that includes scrapping the penalty-free pension at 63, building a funded supplementary pension (1% of gross wages each from employer and employee) and gradually raising the standard retirement age to 67.5 by 2041.
A Forsa poll published alongside the report indicates more than 60% of Germans—and almost 70% of employed people—consider the proposals unbalanced.
