A look at the latest report from the mini-jobs headquarters provides insight into who the coalition is potentially reaching out to through its pension plans. More than 6.8 million people work as mini-jobbers. It is one of twelve in the state, a large group of voters that may not need to be taken too seriously ahead of state elections in Saxony-Anhalt, Berlin and Mecklenburg-Vorpommern in September.
The Pensions Commission’s recommendations, which the coalition essentially wants to implement without compromise, could still prove problematic. The commission appointed by the federal government presented its proposals last Tuesday. One of the demands: abolish all tax and social benefits for mini-jobs, with the exception of students.
The Pension Commission’s recommendations require something from other groups as well. Various interest groups have objections, and the coalition leaders know this too. This is why Chancellor Friedrich Merz (CDU) and SPD chairmen Bärbel Bas and Lars Klingbeil insist on implementing this package; proposals now “shouldn’t be talked about,” says Klingbeil. CSU leader Markus Söder, known for his sharp special requests, also made it clear that he supported the implementation of all plans in principle. However: Söder rejects proposals for mini-works. You have to “be careful not to cause damage that you have to fix again in a year,” says the Bavarian prime minister.
Plans call for new additions to mini-jobbers’ payrolls that won’t cause any celebration. Until now, underemployed people, as mini-jobbers are officially known, have generally been exempt from social security contributions; the employer pays a flat rate of 30 percent. In principle, workers must pay into a pension fund, but can be exempted from doing so, which more than 80 percent do.
For an amount of 603 euros, approximately 130 euros will be deducted.
As a result, mini-jobbers receive a salary with virtually no deductions; they can earn up to 603 euros per month, even outside of a full-time job. If the reform goes through as proposed, mini-jobbers will have to pay full premiums for health insurance, pensions, care and unemployment insurance. For an amount of 603 euros, approximately 130 euros will be deducted.
The removal of special rules will hit restaurants and hotels the hardest, an industry that Söder already championed in the election campaign and pushed for a reduction in the VAT rate on food during coalition negotiations. But there is also a feeling within the SPD that something might happen on this issue. Lower Saxony Prime Minister Olaf Lis (SPD) says he still sees the need for action to implement the recommendations and makes special mention of mini-works.
The model is popular in all age groups. It is used by many students and about 1.3 million pensioners. Most of them are women, including many mothers with children who work part-time. Critics say that for many employees, mini-working will no longer be attractive due to social contributions, and they will lose their income. According to the students’ union, this deprives working students of an important source of income. Almost two thirds have a part-time job and, in the worst case, are at risk of dropping out of school. Employer and industry representatives warn that companies will then no longer be able to find people.
“Mini-jobs mean inevitable poverty in old age.”
On the other hand, trade unions, public associations and most scientists are critical of mini-work. They paved the way for poverty in old age because it did not provide any pension rights; they, in particular, prevented mothers from extending their working hours and pursuing careers—the so-called part-time trap. And they made women dependent on higher-paid partners. As recently as May, the “economic sages” who advise the federal government once again called for the elimination of mini-job benefits.
Despite business protests, there are also important supporters of the abolition of the death penalty in the European Union. “Mini jobs are inevitable poverty in old age,” says Youth Union chairman Johannes Winkel. The labor wing of the CDA is calling for the mini-job rules to be scrapped. In the European Union, the abolition of the death penalty is also seen as a means of combating social violence. They say EU citizens will immigrate, formally take up mini-jobs, and then top up the basic income.
This was reported by a member of the pension commission. South German newspaperit may be necessary to reconsider whether benefits should be retained for groups other than students, who should remain privileged in any case. The argument about impending poverty in old age and the underemployment trap does not apply to students.