Dependent employment

If you as a student are not working self-employed but receive pay by an employer, you are working employed or dependent, respectively.

Particularly relevant for students are the so-called marginal employments, that form, as well as the  working student regulation (20-hours-limit), the flextime regulations’ (midi-job) and the student health insurance explained at the section enrolment, the framework for the dependent work of students.

 

Marginal employment

A marginal employment exists (compare § 8 (1) SGB IV), if

  • The regular monthly wage does not exceed 450 euros:  mini-job (450-euros-job).
  • One or more temporary employment(s) do/es not exceed in total three months or 70 working days per calendar year and is/are not practised professionally: short-term employment.

Who practises these kinds of jobs, as a rule does not need to be insured as an employee at the health-, pension- and unemployment insurance, even if both (mini-job and short-term employment) are combined.

Further information:

Leaflet Geringfügige Beschäftigung und Beschäftigung in der der Gleitzone (BMAS)

mini-job centre

Please note: every student must have a health insurance and the studies must be paramount to the job (20-hours-limit). Additionally, the relevant income limits must be taken into account in regard to BAföG, etc.

 

Mini-job

Mini-job means that the regular income does not exceed 450 euros. If you work in a mini-job, there will almost no deductions from wages. There is merely a compulsory statutory pension insurance.

  • Taxes: Mini-job wages are subject to tax. Income tax can be raised lump-sum or in regard to income tax characteristics.

◦                     In case of lump-sum taxation, the employer pays a flat-rate tax of 2% to the mini-job centre. This flat-rate tax is generally not deducted from the wage. The employer has the option, though, to retain the tax from the employee’s wage.

◦                     With the possible income tax assessment, the retained tax is not taken into consideration, which means that it is not reimbursed to the employee!

◦                     If the tax is raised in regard to income tax characteristics, the employer pays a 20%-tax of the wage (+ solidarity surcharge and church tax) to the tax office.

◦                     Under certain conditions (tax-free allowance!), these taxes can be retrieved within the framework of the income tax assessment.

  • Health-, nursing- and unemeployment insurance:

Excempt from insurance as employee. The employer pays a lump-sum amount of 13% for the permanently marginally employed employees, who are already insured at the statutory health insurance, which also includes family insurance. This does not apply to a private health insurance.

  • There is excemption from insurance as well in regard to nursing- and unemployment insurance, there are no lump-sum contributions.
  • Pension insurance: For marginally employed staff, the employer pays a lump-sum amount of 15 % for the pension insurance, the equity ratio is 3.7 %, which are deducted from the wage.
  • On request, it is possible to be excempted from the compulsory pension insurance (see taxes and social security contributions).

Short-term employment

A short-term employment has a time-limit and must not be practised professionally.

The precondition for a short-term employment is, that not more than a total of three months or 70 working days respectively accumulate from these jobs, which are limited from the outset, within one calendar year. There is no income limit.

  • Taxes: Short-term employment is subject to tax. Income tax can be raised lump-sum or in regard to income tax characteristics.

◦                     In case of lump-sum taxation, the employer pays a flat-rate tax of 2% to the mini-job centre. This flat-rate tax is generally not deducted from the wage. The employer has the option, though, to retain the tax from the employee’s wage.

◦                     With the possible income tax assessment, the retained tax is not taken into consideration, which means that it is not reimbursed to the employee!

◦                     If the tax is raised in regard to income tax characteristics, the employer pays a 20%- tax of the wage (+ solidarity surcharge and church tax) to the tax office. Under certain conditions (tax-free allowance!), these taxes can be retrieved within the framework of the income tax assessment.

  • Health- and nursing insurance: Excempted from contributions for employer and employee if the studies are paramount during the semester or if the job is carried out during semester break (see 20-hours-limit).
  • Pension insurance: Excempted from contributions for employer and employee

 

As soon as the 450-euros-limit is regularly exceed, the working student regulation applies.

Working student regulation (20-hours-limit)

In spite of exceeding the 450-euros-limit, students do not have an employee’s obligation in regard to health-, nursing- and unemployment insurance, as long as the appearance as a student predominates.

The appearance as a student predominates, if not more than 20 hours per week are spent on the job during the semester – the studies must be paramount! This 20-hours-limit may be exceeded as an exception, if:

  • the job is carried out mainly on weekends, in the evening or at night during the semester
  • the job is carried out during semester break, or
  • the job is a short-term employment

 

Midi-job (’flextime regulation’)

In case of a regular income between 450.01 und 850 euros, the ’flextime regulation’ (also called midi-job) applies. In its course, the due social security contributions increase analogous to the increasing flat wage for the employer – for students, only the provisions for the pension insurance will increase (considering the 20-hours-limit).

  • Taxes: The job is subject to tax (see above). As long as the wage (deducting especially the standard allowance for employees, lump-sum provision) stays below the basic tax-free allowance, the income tax retained by the employer will be retrieved in the course of the income tax assessment.
  • Health- and nursing insurance: No compulsory insurance for employees (working student regulation, 20-hours-limit).
  • Pension insurance: The job is subject to pension insurance. With the flextime regulation (between 450.01 and 850 euros per month), the employee has lower pension contributions than regular employees (it is possible to increase to full contributions). Depending on the amount of the wage, the pension contribution of the employee increases flexibly to the full contribution of 9.35%, while the employer always pays 9.35%, if the wage is between 450.01 and 850 euros per month.

The DSW-leaflet Kurzinformation für Studierende offers clearly arranged information note.

As the circumstances and influental factors may differ from case to case, it is always recommendable to seek individual advice at your social counselling, your health insurance or the mini-job centre.

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