Mini-job and pension: Is it worth it for students etc.?

Mini-job and pension: Is it worth it for students etc.?

Mini-jobs are widespread in Germany, with around 7.5 million people working as low-paid employees. An important consideration for mini-jobbers is registering with pension insurance. After a year in the mini-job, the monthly pension usually increases by around five euros, provided that the job was carried out with compulsory insurance. The decision as to whether mini-jobbers want to pay into the pension fund is up to each individual.

It should be noted that the exemption from the pension insurance obligation means that the wages earned and the length of employment are only taken into account proportionally for the pension calculation. If you would like to receive a pension entitlement from your mini-job, you should register this with the German pension insurance in order not to lose any pension entitlement.

Paying into pension insurance is particularly worthwhile for parents with a mini-job, as contributions are increased by up to 50 percent during the so-called “child consideration period” up to the child’s tenth birthday. In addition, mini-jobbers collect waiting months, which give them a pension entitlement. Further advantages of the payment include a claim to a disability pension, state support for private pension provision such as the Riester pension, a right to rehabilitation and paid vacation in accordance with the Federal Vacation Act.

Ultimately, however, it is up to each mini-jobber to decide whether they want to be exempt from paying pension insurance contributions. The decision should be well thought out, taking into account future pension security and individual employment histories. If you are unsure or have any questions, the mini-job center can help.