Starting July 1, young recipients of Bürgergeld (Germany’s basic income for jobseekers) in the southwestern city of Pirmasens will be required to perform 20 hours of community work per week. The pilot project, modelled on a similar initiative already running in Nordhausen, aims to instil a structured daily routine. Participants who refuse may face benefit cuts.
The move is one of several labour-market and social-policy changes taking effect or being debated across Germany this summer. While the Pirmasens project addresses a narrow group, a far broader set of proposals from the federal Pension Commission targets the entire working-age population.
Pension Commission Delivers 30 Proposals to Chancellor Merz and Minister Bas
On June 23, the government-appointed commission will hand over its recommendations to Chancellor Friedrich Merz and Labour Minister Andrea Bas. The package of 30 measures would fundamentally restructure Germany’s retirement system.
Retirement age to rise – The statutory retirement age
New capital pillar – A funded component financed by a dedicated wage contribution of initially 0.5 percent, rising to 2 percent over time. Employers and employees would each pay half. The money would be invested in the stock market.
Broader contributor base – Politicians, the self-employed, and eventually civil servants would be required to pay into the statutory pension insurance system.
Contribution rate and benefit level – From 2028, the contribution rate would climb from 18.6 percent to 19.9 percent. The pay-as-you-go pension level would stabilise at 48 percent of average earnings by 2050; including the new capital pillar, the figure would reach 50 percent.
Minijobs: Immediate Changes and Further Recommendations
Starting July 1, pensions rise by 4.24 percent and the income allowance for widow’s pensions increases to €1,122.53 net per month. For the roughly 7 million workers in “Minijobs” (low-paid marginal employment capped at €603 per month), the reform reopens the option to voluntarily re-enter full pension insurance. Employees would pay a 3.6 percent share of their earnings.
The commission recommends that, going forward, only school pupils should be exempt from social security contributions in Minijobs. Already from 2027, employer lump-sum contributions will jump from 31 percent to over 38 percent. At the same time, Minijob income would count at 40 percent towards the calculation of widow’s pension claims. For schoolchildren from households receiving basic income, holiday jobs remain exempt from any deduction; outside holiday periods, the allowance stays at €603 until January 2027, when it rises to €633.
Labour Market: Full-Time Shortage, Part-Time Surplus
The June labour-market data show a mixed picture. The Gießen region reports an unemployment rate of 5.1 percent, a slight increase year-on-year. Nationwide, the Federal Employment Agency recorded over 205,000 open part-time positions as of June 20. Employers actively recruiting include Dorfner GmbH & Co. KG, apetito catering, and various clinical and nursing-care providers. Offered hourly wages typically range from €15 to €15.95.
Working-Time Reform: Flexible Hours, Digital Time Tracking
Separately, the Labour Ministry is advancing a reform of the Working Hours Act. A draft bill would allow collective-bargaining partners to agree on a weekly instead of a daily maximum working time. The current mandatory 11-hour rest period could be waived – provided employees use electronic time logging on the same day.
Trade unions have criticised the plan, warning of erosion of rest protections. Business associations, particularly in construction and hospitality – sectors with chronically unfilled vacancies – welcome the added flexibility as a tool to combat the skilled-labour shortage.
