What are the benefits of employment
Pension, tax, contract: the most common questions about marginal employment
Earning gross as net: There are no pension or social security contributions for marginal employment - with serious disadvantages.
Minor employment: mini job briefly explained
Partial employment is better than mini job or 450 euros job known. Minor employment includes two different types of mini-jobs: Employment relationships with wages up to the limit of 400 euros and jobs of short duration. In the case of short-term employment, the employment relationship may extend to a maximum of two months or 50 days and an annual average salary may not exceed 400 euros.
Any minor employment is notifiable to social security. Mini-jobbers themselves do not pay any health or pension insurance contributions. They are also exempt from unemployment insurance contributions. This means that the generated 450 euros are paid out without any deductions. As a main occupation, mini jobs are also exempt from tax.
The employer, on the other hand, pays lump-sum social security contributions at a low level for his employee who is employed on a EUR 450 basis. This lump sum is around 30 percent and consists of contributions to health insurance, pension insurance, a flat tax and a small contribution.
Minor Employment: The Benefits
Practice in Germany, for example five million people marginal employment. Then there are around again 2.25 million employees who have a mini job as a sideline exercise. The 450 Euro job has firmly established itself on the German labor market and comparable employment models are also offered in other countries such as Austria.
Minor employment offers workers the financial advantage that they can get on their salary no social security contributions and taxes have to pay. That means: With a 450 Euro job, the gross earnings correspond to the net salary. Those who work on a EUR 450 basis receive their full salary without any deductions. As a sideline, a mini job is a very good way of increasing your salary. In many industries such as retail, mini-jobs are comparably easy to get even without professional experience.
Employers also save with the mini-job model. Although you pay flat-rate health and pension insurance contributions for every employee, you have to pay significantly less costs for this than for a permanent employee.
Minor Employment: The Cons
The advantage of a mini job, namely that the salary is paid gross for net, is also the big one Disadvantage of this employment model. If no contributions are due for part-time employment, Employees do not pay anything into the social security funds either. A 450 euro jobber is not insured in health and long-term care insurance. However, up to the limit of 450 euros there is the option of taking out family insurance with a health insurance company free of charge. Most of the marginal part-time employees are women who can obtain family insurance through their husbands. The € 450 job is therefore often criticized as an additional income model for housewives.
Even mini-jobbers do not pay any contributions into the pension fund, but they earn themselves through the flat rate that their employer pays to the pension insurance minor pension entitlements for old age. Alternatively, for 450 euros workers there is the option of waiving the exemption from insurance in the pension insurance and paying reduced contributions to the pension fund.
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