Industry Groups Blast German Plan to Hike Minijob Costs as 1.6 Billion Euro Yearly Tab Looms
14.06.2026 - 00:11:53 | boerse-global.de
The German government’s drive to shore up social security finances is running into fierce opposition from the country’s retail and hospitality sectors, which say a planned jump in employer contributions on mini-jobs will destroy flexible employment. Alexander von Preen, president of the German Retail Federation (HDE), warned in mid-June that raising the flat-rate employer social insurance levy from 13 percent to 17.5 percent would cost businesses an extra estimated 1.6 billion euros each year. He urged the government to keep current rules intact to preserve flexibility in retail.
Criticism also came from the German Hotel and Restaurant Association (Dehoga). Its managing director, Jana Schimke, said Friday that for minijobbers in health and care, the burden could climb as high as 21 percent. “In a sector with intensive use of staff, that puts jobs at risk,” she argued. The reform also targets midi-jobs – positions with monthly earnings between 603 and 2,000 euros – adding to the list of affected workers.
Berlin wants the package to cut spending at least 16.3 billion by 2027. Health Minister Nina Warken (CDU) defended the bill in the Bundestag on Thursday as essential for long-term system stability, warning that without action the budget hole could widen to around 44 billion by 2030. The minister signalled willingness to tweak details but insisted the law demands sacrifices from all sides without going too far.
Beyond the minijob levy, the government plans a suite of additional savings: limiting or scrapping contribution-free spousal insurance, raising statutory co-payments to between 7.50 and 15 euros, eliminating coverage for homeopathy, cannabis, skin cancer screening and orthodontics, introducing a sugar tax, and capping nursing budgets in hospitals.
Political backlash mounted quickly. The Greens called the plan “a slash-and-burn approach to healthcare”; the Left warned of staff cuts; the AfD dismissed it as both unfair and ineffective. Support came from the National Association of Statutory Health Insurance Funds (GKV-Spitzenverband) and employer president Rainer Dulger. A separate flashpoint is the financing of non-insurance benefits, which the IGES Institute calculated at roughly 64 billion euros. Critics and the Bundesrat demand the federal government fully cover contributions for welfare recipients instead of the current flat-rate payment, which market observers say creates a yearly deficit of around 9 billion euros.
Time pressure is building. The coalition aims to pass the law before the summer recess in mid-July, with June 26 as a possible decision date. But Bundesrat president Andreas Bovenschulte (SPD) expects strong resistance from the state chamber. He warned of impending hospital insolvencies and predicted the law will head to the mediation committee after the next Bundesrat session on July 10.
