Craftsmen' Association Chief Calls for Higher Early Retirement Penalties and Protects Gig Work Flexibility
Economy / Finance

Craftsmen’ Association Chief Calls for Higher Early Retirement Penalties and Protects Gig Work Flexibility

Jörg Dittrich, the president of the Central Association of German Crafts (ZDH), supports raising the penalties imposed on individuals who choose to retire early. Speaking to the “Rheinische Post”, he stated that this measure is necessary, even though he recognizes it will likely cause friction among some of his constituency. He asserted that it would be disingenuous to suggest that the pressures created by demographics affect the crafts sector but not the general population.

According to Dittrich, society as a whole must increase the effective age of retirement; he emphasized, “It cannot be otherwise.”

However, while advocating for higher retirement penalties, he opposes the idea that minijobs might disappear as part of the pension reforms. Dittrich argues that the crafts industry requires flexible forms of employment, and therefore minijobs should remain an option for those seeking supplementary income.

He conceded that there is a distinction when an individual relies entirely on minijobs without paying social contributions. He stated that this situation would be unfair to those who fund the social system through their contributions. Additionally, he cautioned that any reform must not lead to higher operational costs for businesses. Finally, to ensure minijobs remain attractive to workers, the existing flat-rate taxation system must be maintained, and he urged that any negative spillover effects be prevented.