SPD Proposes Exceptions for Students in Minijob Debate Amid Calls to Abolish Low-Wage Work
Politics

SPD Proposes Exceptions for Students in Minijob Debate Amid Calls to Abolish Low-Wage Work

Amid the fierce debate over the planned abolition of mini-jobs, the Social Democratic Party (SPD) is signaling possible avenues for compromise. Annika Klose of the SPD told the German Editorial Network that she is willing to talk about exceptions for students, not just for school pupils. Alternatives suggested include expanding regulations for student workers or offering students mandatory retirement insurance through discounted tariffs.

Klose previously served on the SPD’s Pension Commission, which had recommended a sweeping end to mini-jobs, with the exception of minors. The commission justified its proposal by noting that many mini-jobbers are poorly protected and therefore face a high risk of poverty in their old age. However, resistance to the abolition remains, primarily from employers in sectors like catering and trade, as well as from parts of the Union, which advocate for continuing to allow mini-jobs for students and retirees.

Klose argued that for students, mini-jobs constitute supplementary income rather than a substitute for regular employment subject to social security obligations, making exceptions plausible. She, however, rejected the idea of allowing retirees to continue working as mini-jobbers. Because of new income possibilities through the “Active Pension” program, retirees could already earn up to €2,000 monthly tax-free and were not paying into the pension system, in her view.

The pushback is strong from employers, many of whom rely on mini-job labor. Concerns are also voiced within the Union, led by CSU boss Markus Söder. Klose also showed willingness to compromise regarding private individuals who employ mini-jobbers for household help. She noted that this represents a very small segment, as over 96% of mini-jobbers work in other sectors, with only three percent utilized in private households. She suggested that certain simplifications could potentially be granted for these rare cases.

Regarding the implementation, a transition period will be observed, giving both employers and mini-jobbers time to adapt. A timeframe of two to three years is expected to be targeted for the full rollout.

Although the federal government has promised to completely implement the Pension Commission’s proposals and intends to pass a legislative package by the end of the year, CSU leader Söder and Chancellor Friedrich Merz of the CDU have recently clarified that the mini-job plans are still subjects for discussion and negotiation.