Economist Martin Werding is cautioning against panic surrounding the public debate regarding the potential abolition of “Minijobs.” According to his statements to the “Handelsblatt”, he argues that the possible consequences of such a change are being grossly exaggerated, fueling unnecessary anxiety. He stresses that these jobs would not disappear entirely, as part-time positions with low weekly hours could continue to be offered at all times.
Werding further contended that for companies, part-time jobs comparable to the current Minijobs would not become more expensive. He provided a detailed financial comparison: a standard employment relationship requires 42 percent in social contributions, half of which is covered by the employer. In contrast, Minijobs currently only necessitate a flat rate of 31 percent from the employer. He suggests that for a mandatory change to take place, the gross salary would need to be raised by approximately ten percent, otherwise, employers would actually save costs. This adjustment would offset the majority of the losses for employees, who would then have to pay 21 percent in social contributions.
Werding added that those who wished for a higher net income could easily increase their working hours by one hour per week. He explained that, unlike the current system, neither employers nor employees would be restricted by the income limits of Minijobs. In conclusion, he anticipates that abolishing Minijobs could actually lead to an expansion of job offers. Additionally, he rejected the argument that Minijobs provide superior flexibility, stating: “This flexibility abruptly ends at the Minijob threshold.”
