Pension insurance and mini-jobs: new rules from 2024

Pension insurance and mini-jobs: new rules from 2024

Mini-jobs are widespread in Germany, with millions of people in such employment relationships. According to a current survey by the Federal Employment Agency, a total of 7.5 million low-paid employees were registered in January this year. This resulted in 4.1 million people who only worked a mini-job, while 3.3 million had the mini-job as a sideline. There have been some changes for mini-jobbers since the beginning of 2024.

For many people, a mini-job is a way to earn extra money for living expenses or rent. However, it is important to consider the impact on your pension in retirement. A mini-job alone may often not be enough to avoid poverty in old age. One consideration would be to pay into pension insurance. According to the German Pension Insurance, if you earn 538 euros a month, your monthly pension increases by five euros after a year in a mini-job.

There are clear advantages to registering a mini-job and paying into your pension insurance. This includes collecting waiting months, claims for disability pensions, state subsidies such as the Riester pension, claims for rehabilitation services, paid vacation and much more. Paying contributions is particularly worthwhile for parents, as the contributions are significantly increased when calculating the pension between the child's third and tenth birthday.

However, it is important to take into account that the costs of paying into pension insurance are shared between employers and mini-jobbers. The contribution rate is currently 18.6 percent, but at least 32.55 euros. Every mini-jobber has to consider individually whether paying contributions to pension insurance is worth it. Many seniors also work mini-jobs to supplement their limited pensions. There are many reasons for low pensions, including incomplete employment histories, low pay despite lifelong work and individual living circumstances, which must be taken into account.