Minijob & Midijob bands (Minijob / Midijob)

Level 1 · BasicsDE · 2026 figures

German termMinijob / Midijob (Übergangsbereich)

Deep divesStudent Tax Returns — Loss Carryforward

A Minijob is work paid tax-free, with only a reduced employee social-insurance share, up to the Geringfügigkeitsgrenze (marginal-employment threshold) — €603/month in 2026, set dynamically from the minimum wage. A Midijob sits in the Übergangsbereich (transition zone), up to €2,000/month, where contributions phase in gradually. Above €2,000, full tax and social-insurance liability applies.

Why it matters

Students working part-time, second earners in a household, and newcomers taking a first German job often start out in one of these two bands before moving to full employment. Crossing a band boundary changes which rules apply for the whole month, not just for the euros over the line — there is no partial phase-in at the Minijob edge itself, only inside the Übergangsbereich. A Minijob also has an unusual pension profile: workers are automatically covered by mandatory pension insurance (Rentenversicherungspflicht) by default, but most request an exemption (Befreiung) that drops the small employee contribution — and, with it, most further pension accrual from that job.

The bands, 2026

Band	Monthly earnings (2026)	Income tax	Employee social-insurance share	Pension accrual
Minijob	up to €603	none withheld	3.6-percentage-point pension top-up by default; removed if the worker requests exemption (Befreiung)	accrues on the low wage while the top-up is paid; minimal once exemption is requested
Midijob (Übergangsbereich)	€603.01–€2,000	normal, per tax class	phased in gradually from near the Minijob rate up toward the standard rate	full, scaled to actual gross pay
Regular employment	above €2,000	normal, per tax class	standard rate (part of the combined ~20% employee share across pension, health, long-term care, unemployment insurance)	full

The Minijob threshold is not a fixed number set by law each year — it is calculated as minimum wage x 130 / 3, rounded up to the nearest euro (§8 SGB IV). With the 2026 minimum wage at €13.90/hour, that formula gives 13.90 x 130 / 3 = 602.33, rounded up to €603/month (€7,236/year) [1][2]. The Übergangsbereich's upper limit, by contrast, is a fixed figure in §20 SGB IV and has stood at €2,000/month since January 2023 [3].

Worked example

A part-time job paying €580/month sits inside the Minijob band: no income tax is withheld, the employer pays its own flat-rate contributions regardless, and — unless the worker actively keeps the pension top-up rather than requesting the standard exemption — the job adds close to nothing to future state pension entitlement. The same job at €620/month crosses into the Übergangsbereich: income tax now applies per the worker's tax class, and social-insurance contributions come out of the paycheck at a rate that starts low near €603 and rises toward the full rate by €2,000 — but every euro of pay counts fully toward pension entitlement, unlike the exempted Minijob case.

Check yourself

A worker's monthly pay moves from inside the Minijob band into the Übergangsbereich (transition zone). What changes?

Nothing changes until pay reaches the top of the transition zoneIncome tax starts applying per the worker's tax class, and employee social-insurance contributions begin phasing in from a reduced rateThe worker immediately starts paying the full standard employee social-insurance ratePension accrual stops

How is the Minijob threshold (Geringfügigkeitsgrenze) determined each year?

Parliament sets a new fixed euro amount every JanuaryIt is calculated from the statutory minimum wage: minimum wage times 130, divided by 3, rounded up to the nearest euroIt tracks the consumer price index (VPI) each yearEach Bundesland (federal state) sets its own threshold

Which of these statements about pension insurance in a Minijob are true? Select all that apply.

The employer pays a flat-rate contribution regardless of the worker's own choiceBy default, mandatory pension insurance applies unless the worker requests an exemption (Befreiung)Requesting the exemption (Befreiung) increases the worker's future pension entitlement from that jobAll Minijobs are taxed at the worker's individual marginal income-tax rate

Is the Übergangsbereich's (transition zone's) upper limit dynamically tied to the minimum wage, like the Minijob threshold is?

Yes, it uses the same minimum-wage formula as the Minijob thresholdNo — it is a fixed amount defined in Section 20 SGB IV, unchanged since it was set in 2023No — it adjusts each year with the consumer price indexYes — it is always set at exactly twice the Minijob threshold

Why it matters​

The bands, 2026​

Worked example​

Check yourself​

Sources​

Why it matters

The bands, 2026

Worked example

Check yourself

Sources