• Impact date: 1 January 2013

The German Parliament has decided for new rules that provide for a higher income limit for so-called mini-jobbers. At present, the remuneration from a low-income job is tax-free provided that the employee’s monthly salary does not exceed a maximum limit of EUR 400.00. The German Parliament decided to increase this maximum income limit from EUR 400.00 to EUR 450.00 with effect as of 1 January 2013.

This change of law will lead to a further increase of the number of low-income jobs. At present, there are over 7 million employees in minor employments with a maximum income of EUR 400.00.