German Interns and Mini-Jobbers Face New Pay Rules as Commission Calls for End to Tax-Free Status
25.06.2026 - 02:01:59 | boerse-global.de
Germany’s minimum wage rose to €13.90 on 1 January, bringing immediate consequences for interns and the country’s 6.55 million mini-jobbers. The increase, already scheduled to climb again to €14.60 in 2027, has sparked a far-reaching debate over the future of marginal employment.
Interns fall into two sharply distinct categories. Those on compulsory placements required by their study or training regulations have no claim to the minimum wage at all. The same exemption applies to voluntary internships that last less than three months and are intended purely for career orientation. But anyone doing a voluntary internship that stretches beyond three months – or who starts an internship after completing a degree or apprenticeship – must be paid the full minimum wage from day one.
Employers are required to issue a written reference to every intern on completion. Fines for violations can reach €500,000.
The bigger political shock came on 24 June, when Germany’s Rentenkommission (pension commission) formally proposed scrapping the special tax- and social-insurance-free status of mini-jobs entirely. The goal, the commission says, is to shift these positions into regular, fully insured employment. Critics argue the current system exposes workers – particularly women – to long-term social risks.
Chancellor Merz has voiced support for implementing the recommendations in full. The SPD, Greens and Left Party also favour abolition. The AfD wants to raise the earnings thresholds instead. Within the CDU/CSU, positions remain divided. Possible exceptions could apply to school pupils, students and pensioners.
Business associations have responded with alarm. The Zentralverband des Deutschen Handwerks and the hotel and restaurant association Dehoga warn that the hospitality, retail and agricultural sectors would be hardest hit. Their calculation: on a mini-job earning the current ceiling of €603 a month, a worker would face deductions of roughly €130 for the full suite of social insurance contributions.
Despite the reform push, a change taking effect on 1 July allows mini-jobbers to reverse their previous opt-out from pension insurance once. Doing so gives them additional pension entitlements and access to Riester subsidies.
At the same time, Health Minister Warken is proposing to raise employer contributions to health insurance from 13 percent to 17.5 percent, and to long-term care insurance to 3.6 percent. That could push total employer social costs from 31 percent to as high as 39 percent.
The German Institute for Economic Research (DIW), however, argues the abolition plans are correct, saying they would create incentives for longer working hours.
