The regular monthly salary continues to be decisive for the marginal earnings limit. If the regular monthly salary permanently exceeds the permitted marginal earnings limit of now EUR 520, the marginal employment ends.
What happens if the EUR 520 threshold is exceeded unplanned?
As of October 1, 2022, the unforeseeable exceeding of this earnings limit is regulated by law. It may not be exceeded in more than two calendar months within a fiscal year. The new regulation also includes a cap on additional earnings per calendar month. These may not exceed twice the marginal earnings limit (EUR 1,040) in any one calendar month. Thus, in the event of an unforeseeable excess, a maximum income of EUR 7,280 (14 x EUR 520) is possible over a period of twelve months. Thus, the legislator is creating clarity compared to the previously applicable guideline on marginal earnings issued by the top social insurance organizations.
What regulations will apply to employees with a previous income between EUR 450.01 and EUR 520?
For employees already employed on September 30, 2022, with a previous monthly salary of between EUR 450.01 and EUR 520, a grandfathering provision applies. These employees will remain generally subject to compulsory health, long-term care, and unemployment insurance until December 31, 2023. There is no grandfathering provision for pension insurance. In this regard, the regulations for mini-jobs apply, i.e., 15 % employer’s contribution and – unless the employee has submitted a waiver of the pension insurance obligation – 3.6 % employee’s contribution.
Important: These employees can apply for exemption from compulsory health, long-term care and unemployment insurance. Such application must be submitted in writing to the employer no later than January 2, 2023 and generally takes retroactive effect from October 1, 2022. However, if health insurance benefits have already been claimed after September 30, 2022, the exemption (also for long-term care insurance) is only effective from the beginning of the calendar month following the month in which the application was submitted. Only for unemployment insurance can an application for exemption also be submitted after January 2, 2023. Such exemption will take effect from the beginning of the calendar month following the month in which the application was submitted.
Are there any changes in the “midijob” earnings limit?
Low-income employees earning more than EUR 520 will also be subject to an adjustment from October 1, 2022. Provided they now earn a maximum of EUR 1,600 per month, these employees will be subject to lower social security contributions with full protection in all branches of social security. The social security contributions for the employer increase accordingly. Previously, this so-called transitional range ended at EUR 1,300.
As part of the third relief package, the maximum midijob threshold above which full social security contributions are payable is to be raised to EUR 2,000 from January 1, 2023. A corresponding resolution has already been passed by the Federal Cabinet on October 5, 2022.