Germany Loses Billions as Minijobs Escape Social Security

Germany Loses Billions as Minijobs Escape Social Security

Because minijobs are exempt from social‑insurance contributions, the German social security system loses billions of euros each year. According to figures released by the Federal Ministry of Labour and Social Affairs in response to a request from the left‑wing party, the deficit in contributions from minijobs amounts to €11.30 for every €100 of taxable income. With the 2024 average minijob wage of €387, the shortfall per job per month is roughly €44. The root of the problem is that minijobs either do not trigger certain social‑insurance contributions or do so at a reduced rate.

If all 7.9 million employees in mini‑employment were required to pay social insurance from the very first euro they earned, the system could receive a substantial increase in revenue. The Ministry estimates that, on an annual basis, this figure could exceed €4 billion-at least in theory. However, it cautions that the numbers cannot be reliably projected because they overlook hidden adjustment effects.

Pascal Meiser, the left‑wing party’s spokesman on labour policy, blasted minijobs in the „Rheinische Post” for “massively undermining the financial base of our solidarity‑based social‑insurance system”. He called it “absurd” to continue to defend a parallel system that sidesteps compulsory coverage, and urged that the coalition minister of labour, Bas, must act now and present a proposal to transition minijobs into fully insured employment.