A sweeping reform proposal from Germany’s pension commission would force the country’s roughly 6.8 million mini-job holders to start paying into the state retirement system. Currently, 79.1 percent of those workers contribute nothing at all toward their own pension coverage.
The plan, unveiled on June 23, introduces a compulsory pension insurance contribution of 9.3 percent of gross earnings for every mini-jobber. At the current monthly earning limit of €603, that works out to roughly €56 deducted from each employee’s pay. Only school pupils would be exempt.
The commission’s 33 recommendations go further: they also call for eliminating the “pension at 63” early retirement option, creating
CDU General Secretary Carsten Linnemann backed the mini-job overhaul on June 28, arguing that even low-wage part-time workers need to save for old age. He did not rule out raising the top income-tax rate to offset tax relief elsewhere. Chancellor Friedrich Merz and Bundestag President Bärbel Bas have signaled support for the package.
Business groups are mobilizing against the plan. The German Farmers’ Association warned that about 40 percent of agricultural employees work on mini-job contracts, and its president, Joachim Rukwied, flatly rejected the proposal. The DEHOGA hospitality association said roughly 1.1 million people in gastronomy — half the sector’s workforce — are mini-jobbers. Managing director Schimke noted that employers already pay flat-rate contributions of 15 percent for pension and 13 percent for health insurance, and vowed to fight any change. CSU leader Markus Söder also came out against scrapping the status quo.
Unions and economists see the reform differently. Monika Schnitzer, a member of Germany’s council of economic experts, welcomed the push on June 27, describing the current mini-job privilege as a hidden subsidy for certain industries. NGG union chair Zeitler likewise called for an end to the system, arguing that it entrenches precarious working arrangements.
Social welfare organizations, including the SoVD, warned that the changes could disproportionately hurt women, who make up a large share of this workforce. Retiree Rita Mangliers, 69, supplements her €1,200 monthly pension with a mini-job. She told reporters that the mandatory contribution would eat into her already tight budget.
No formal bill has been drafted yet, but analysts say the measure could be implemented relatively quickly. The coalition committee is scheduled to take up the proposals on July 1.
