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The Federal Cabinet passed the fourth minimum wage adjustment ordinance on November 15, 2023. This decision already included an agreement to raise the mini- and midi-job threshold for 2025.
The minimum wage will rise to €12.82 gross per hour from January 1, 2025 (we already reported). The upper limit for marginally employed persons (the so-called mini-job) will rise from €538.00 to €556.00. In future, the midi-job range will be between €556.01 and €2,000.
As a result of the increase in the minimum wage, a marginally employed worker may earn up to €556.00 on average. The dynamic marginal earnings threshold will continue to be based on a working week of 10 hours.
Unforeseeable, occasional overruns of the earnings limit for mini-jobs are still permitted. In 2025, the additional earnings may not exceed twice the marginal earnings threshold of €1,112.00 in a calendar month. In exceptional cases, maximum earnings of € 7,784.00 (14 x € 556.00) over a period of 12 months are possible.
From January 1, 2025, employees with an income between €538.00 and €556.00 will be exempt from compulsory health, long-term care and unemployment insurance. This change affects employees who were previously subject to compulsory insurance.
Compulsory insurance remains in place for pension insurance. However, employees can apply for exemption from compulsory pension insurance.
Employers should check with the payroll in January at the latest whether employees are affected by the increase in the mini-job limit.
Ulrike Thomas
Partner
Certified Tax Advisor
Christian Eisele
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