What is the difference between a mini job and a part-time job?
October 24, 2022 | 40,00 EUR | answered by Claudia Köhler
Dear tax advisor,
My name is Jenny Schlosser and I am currently working part-time in a small company. I recently heard from a colleague that there is also the possibility of working in a mini job. Now I am wondering what the exact difference is between a mini job and part-time employment.
Currently, I am working part-time and earning a fixed amount monthly, based on my working hours. I have fixed working hours and work regularly on certain days of the week. I am employed subject to social security contributions and also receive holiday and sick pay.
I am unsure whether it would be beneficial for me to instead take on a mini job. I am wondering if I would earn less or if there are tax differences. I am also not sure if I would be as well protected in a mini job as in my current part-time employment.
Could you please explain to me what exactly the difference is between a mini job and part-time employment? What are the advantages and disadvantages of each? What should I consider if I am thinking about switching from part-time employment to a mini job? Are there any tax aspects I should be aware of?
Thank you in advance for your help.
Best regards,
Jenny Schlosser
Dear Mrs. Schlosser,
Thank you for your question regarding the difference between a mini job and part-time employment. I would be happy to help you understand the differences as well as the advantages and disadvantages of both types of employment.
A mini job is a marginal employment where you can earn up to 450 euros per month. In this case, you are exempt from pension, unemployment, and health insurance contributions. On the other hand, in part-time employment, you work more hours per week and earn accordingly more. In this case, you are subject to social insurance contributions and entitled to vacation and sick pay.
One advantage of a mini job is that you do not have deductions for social security contributions, so you have more net income. However, in a mini job, you are also only limitedly insured, as you do not build up pension entitlements. In contrast, in part-time employment, you are entitled to all social benefits and are comprehensively insured.
If you are considering transitioning from part-time employment to a mini job, you should consider whether the higher net compensation is more important to you than comprehensive social security. You should also consider that in a mini job, you do not build up pension entitlements and may potentially rely on state support in old age.
From a tax perspective, there are also differences in a mini job. Since you do not pay social security contributions, your gross income is not reduced, which can have tax implications. In contrast, in part-time employment, social security contributions are deducted, reducing your taxable income.
Overall, it is important to carefully weigh all aspects and possibly also consult with your employer or a tax advisor to make the best decision for your personal situation.
I hope that I could help you with this information. If you have any further questions, please feel free to contact me.
Best regards,
Claudia Köhler
