![[Germany] Government’s plan for 39% employer levy threatens millions of mini-jobs](http://gpa.net/cdn/shop/articles/bigstock-Berlin-Germany--June------324125659_1200x.jpg?v=1781810777)
In Germany, business associations have raised concerns about government plans to hike employer contributions for low-wage workers to above 39 per cent, Ad Hoc News reports.
They warn that the move would effectively abolish the country's seven million mini-jobs through the back door.
The proposed reform would reportedly push the combined employer-paid health and long-term care insurance surcharges from their current rate of 31 per cent to nearly 39 per cent, adding billions in annual costs for companies.
The draft legislation proposes that the flat-rate employer contribution to statutory health insurance should rise from 13 per cent to 17.5 per cent. In addition, a new long-term care insurance contribution of 3.6 per cent is planned. It would be paid entirely by employers.
Health Minister Nina Warken (CDU) stated that the increases are necessary to plug a financing gap in the nursing care system. Her ministry expects additional revenue of between €1.2 billion and €3 billion per year.
The cabinet is scheduled to vote on a formal bill in June 2026.
The German Retail Association (HDE) reportedly described the plan as a “fatal cost explosion” that would destroy the business model behind mini-jobs. According to industry figures, around 800,000 of the country's seven million mini-jobbers work in retail.
The German Hotel and Restaurant Association (Dehoga) lent its voice to the warning. President Guido Zöllick said, “The reform makes labour massively more expensive.”
In the building-cleaning sector, approximately 30 per cent of 700,000 employees are mini-jobbers. Industry representatives are said to fear rising prices and staff cuts as companies contend with additional payroll costs.
However, while the CSU reportedly cautions against abandoning mini-jobs, the SPD has raised the option of converting them into regular, fully-insured positions.
Source: Ad Hoc News
(Quote via original reporting)
In Germany, business associations have raised concerns about government plans to hike employer contributions for low-wage workers to above 39 per cent, Ad Hoc News reports.
They warn that the move would effectively abolish the country's seven million mini-jobs through the back door.
The proposed reform would reportedly push the combined employer-paid health and long-term care insurance surcharges from their current rate of 31 per cent to nearly 39 per cent, adding billions in annual costs for companies.
The draft legislation proposes that the flat-rate employer contribution to statutory health insurance should rise from 13 per cent to 17.5 per cent. In addition, a new long-term care insurance contribution of 3.6 per cent is planned. It would be paid entirely by employers.
Health Minister Nina Warken (CDU) stated that the increases are necessary to plug a financing gap in the nursing care system. Her ministry expects additional revenue of between €1.2 billion and €3 billion per year.
The cabinet is scheduled to vote on a formal bill in June 2026.
The German Retail Association (HDE) reportedly described the plan as a “fatal cost explosion” that would destroy the business model behind mini-jobs. According to industry figures, around 800,000 of the country's seven million mini-jobbers work in retail.
The German Hotel and Restaurant Association (Dehoga) lent its voice to the warning. President Guido Zöllick said, “The reform makes labour massively more expensive.”
In the building-cleaning sector, approximately 30 per cent of 700,000 employees are mini-jobbers. Industry representatives are said to fear rising prices and staff cuts as companies contend with additional payroll costs.
However, while the CSU reportedly cautions against abandoning mini-jobs, the SPD has raised the option of converting them into regular, fully-insured positions.
Source: Ad Hoc News
(Quote via original reporting)
