Niedersachsen Minister Backs Plan to Kill Mini-Jobs, Triggering Fierce Backlash From Industry
Published on 06/24/2026 at 11:35 | Redaktion boerse-global.de
A push to scrap Germany’s unique mini-job category is gathering momentum after the labor minister of Lower Saxony threw his weight behind the idea – a move that would upend the working lives of 6.55 million people.
The proposal, drawn up by the federal pension commission and now publicly endorsed by Andreas Philippi (SPD), would sweep away the special status for most of these low-hour, low-wage positions. Workers between 18 and 68 would see their mini-jobs turned into standard, fully insured employment. Only school pupils would be spared. Midijobs – the next tier up – would vanish too. Philippi declined to give a specific start date, but experts believe implementation could come quickly.
The sheer scale of the shift is staggering. Nationwide, roughly 6.55 million people hold commercial mini-jobs, plus another 252,000 working in private households. Women make up 55.9 percent of the mini-job workforce; around 18.3 percent of positions are held by foreign workers. An estimated 1.2 million mini-jobbers are already past retirement age.
Under the current rules, a mini-job pays up to €603 a month and employers pay a flat-rate contribution of about 30 percent. In the first quarter alone, those payments sent €1.3 billion into the pension system and €1.02 billion into health insurance. From 1 July 2026, mini-jobbers who had previously opted out of pension insurance will be allowed to reverse that decision. Someone earning the full €603 cap would then pay roughly €21.70 a month into the state pension.
The reform enjoys backing from the SPD, the Greens and the Left Party, while the AfD opposes it. The conservative CDU/CSU bloc is split. Trade union Verdi welcomes the idea too; chairman Frank Werneke argues that mini-jobs are a major driver of old-age poverty.
But business groups are crying foul. The German Hotel and Restaurant Association (Dehoga) in Lower Saxony says the plan would devastate the hospitality sector. Its president, Dirk Breuckmann, warns that 109,000 people in the state alone work in gastronomy via mini-jobs. The German Retail Federation (HDE) fears hundreds of thousands of positions could be lost in shops.
Economists point to another danger: a surge in undeclared work. Friedrich Schneider, a researcher focused on the shadow economy, predicts that illegal employment could balloon, putting the potential size of Germany’s hidden economy at at least €25 billion by 2027.
The Halle Institute for Economic Research (IWH) calculates that around four million mini-jobbers would initially take home less net income if their posts became regular jobs. At the €603 threshold, a worker currently enjoys an extra €130 a month compared with a standard employment arrangement.
Germany’s Federal Employment Agency has previously voiced criticism of mini-jobs, citing a lack of career progression and weak social protection. The state, for its part, hopes that converting these positions would bring in additional revenue of roughly €4.5 billion. That would help as general social security contributions are projected to climb above 38 percent in 2027.
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