So-called summer jobs are generally short-term positions that are limited from the outset to no more than three months or 70 working days within a calendar year. For short-term employment, the amount earned is irrelevant. No social security contributions are paid, and therefore no pension entitlements are accrued. But be aware: Employment is not considered short-term if it provides a livelihood—that is, if it is carried out on a professional basis.
Due to the COVID-19 pandemic: Summer jobs can last longer
Due to the COVID-19 pandemic, the federal government has once again extended the time limits for 2021. This year, summer workers may, as an exception, hold their jobs for a longer period between June 1 and October 31: for four months or 102 days. The key requirement is that the employment is limited in duration from the outset, either by contract or by its nature. This is particularly the case for summer jobs held by high school or college students, but also applies to harvest workers in agriculture.
Employment that began before the transitional regulation took effect on June 1, 2021, but was not limited to a maximum of three months or 70 working days at the start, may not be reclassified as short-term employment even with the extension of the time limits. This applies even if they comply with the time limits of four months or 102 working days.
Temporarily Extended Time Limit Also Applies to Mini-Jobs
Those with a mini-job also benefit from the extension of the time limit: During a transitional period from June 1 through October 31, 2021, the monthly earnings limit of 450 euros may be exceeded up to four times within a calendar year.
If a mini-job holder’s earnings exceed 450 euros in individual months and their annual earnings consequently exceed 5,400 euros, this does not automatically result in the termination of the mini-job. A mini-job remains valid even if the higher earnings are paid occasionally and are not foreseeable. There is no upper limit on the amount by which the limit may be exceeded.
The minijobber’s overtime must therefore be only occasional and not agreed upon in advance. The prerequisite is that the monthly earnings of 450 euros are exceeded only occasionally and unpredictably. Overtime is considered unpredictable, for example, when other employees are sick or in quarantine due to the COVID-19 pandemic.
Be Careful with BAföG
High school students and college students who receive BAföG can earn an additional 450 euros gross per month without it being counted against their benefits.
The gross income during the approval period—that is, the period for which BAföG is approved—is generally the determining factor. First, the annual flat-rate income-related expense allowance of 1,000 euros is deducted proportionally from this gross income, followed by the social security flat rate of 21.3 percent. The remaining amount is divided by the number of months in the approval period. Finally, the monthly exemption of 290 euros is deducted.
Based on this calculation method, a gross income of 5,421.84 euros over twelve months—or 451.82 euros per month—is exempt from deduction. This means that trainees can hold a 450-euro mini-job without monthly deductions being made from their BAföG funding. If they exceed this amount, their financial aid will be reduced.
Systemically Important Jobs Do Not Affect Funding
Additional income earned by students since March 1, 2020, from work in a systemically important profession will not affect BAföG funding until the end of the pandemic. This applies both to newly taken-on work and to an increase in the scope of existing work. For those who were already engaged in such work—for example, in the healthcare and nursing sectors—before March 1, 2020, their income will continue to be counted at the previous level. However, income from additional hours worked will not be counted. This special provision applies only to trainees eligible for BAföG, not to their dependents.
Please note: Once the epidemic situation is officially declared over, income from such work will again be taken into account. The end of the epidemic situation will be determined and announced by the German Bundestag.
Better Pay with the IG Metall Collective Bargaining Agreement
The statutory minimum wage, currently 9.60 euros gross per hour, also applies to high school students and college students. Minors with a summer job are not entitled to the minimum wage. Incidentally, you can easily calculate how the statutory minimum wage affects your earnings and the number of hours worked using the minimum wage calculator from the Federal Ministry of Labor and Social Affairs.
IG Metall collective bargaining agreements apply to all companies bound by collective bargaining agreements in the metal and electrical industries, the steel industry, the textile and apparel sectors, the wood and plastics sectors, the ICT sector, and the automotive and electrical trades. They regulate pay, working hours, the number of vacation days, additional vacation pay, and much more. This also applies to summer workers—provided they are members of IG Metall.
Summer job workers usually don’t pay taxes
High school and college students who earned less than 9,744 euros in 2021 generally do not pay taxes. In addition, there is a flat-rate allowance for income-related expenses of 1,000 euros per year. Those who earned more than this amount and paid taxes can claim a refund of the withheld income tax by filing a tax return the following year.
