
VW Jobs Crisis: What 100,000 At-Risk Roles Mean for Workers in Germany
VW's CEO hints at alternatives to plant closures, but over 100,000 jobs remain at risk. Here's what expat and foreign workers at VW and suppliers need to know.

If you work a minijob in Germany — or have considered taking one — you have probably heard the recent debate about whether this flexible employment model might disappear. Germany's pension reform commission recommended abolishing minijobs as part of a broader overhaul of the country's retirement system. The federal government had signalled it would follow those recommendations closely. That has now changed, at least politically. CSU leader and Bavarian Minister-President Markus Söder has made a firm public commitment: minijobs are staying. For the hundreds of thousands of expats and immigrants in Germany who rely on this type of work, this is reassuring news — though it is worth understanding exactly what is happening and what it means for you.
A minijob is a type of marginal employment in Germany where you earn up to €556 per month (as of 2024). The key advantage is that the employee pays no income tax and no social security contributions on those earnings — the employer covers a flat-rate contribution instead. This makes minijobs especially attractive for:
Germany has around 7 million minijob workers. Among expats, the model is popular precisely because it keeps administration simple and does not require complex tax filings in most cases.
Germany's pension reform commission, set up to address the long-term sustainability of the public pension system, recommended abolishing minijobs. The argument was straightforward: because minijob workers do not pay into the Rentenversicherung (pension insurance) system, they accumulate little or no pension entitlement. Over time, this creates a risk of old-age poverty, particularly for women who work minijobs for extended periods. The commission argued that all employment should be subject to standard social contributions.
The federal government had initially indicated it would implement the commission's proposals as closely as possible — a signal that many interpreted as a green light for the end of minijobs.
CSU leader Markus Söder has been critical of the minijob abolition proposal from the very beginning. He has now gone further, making a public promise that minijobs will remain. Söder framed the issue as one of practicality and fairness — arguing that many people genuinely need and benefit from the current model, and that scrapping it would hurt low-income workers and small businesses alike.
While Söder leads Bavaria and not the federal government, the CSU is a significant political force in Germany's coalition dynamics. His firm opposition makes it considerably harder for any federal government to push through minijob abolition, at least in the near term.
For now, nothing changes. Minijobs continue to operate under current rules, with the €556 monthly earnings limit. If you are already working a minijob, your employment status, tax exemption, and employer contribution structure remain exactly as they are.
However, it is worth noting that this is a political statement, not a change in law. The debate about pension reform is ongoing, and future governments could revisit the question. If you are building a long-term life in Germany, it is also worth being aware of the pension contribution gap that minijobs create — you are not building up significant Rentenversicherung entitlements through this type of work alone.
Yes. You are allowed to hold one minijob alongside your main job without paying additional social contributions on the minijob income. However, if you hold more than one minijob, the earnings are combined and may become subject to standard contributions. Always check your specific situation with your employer or a tax adviser.
Yes, it can. Some visa categories restrict the type or volume of work you are permitted to do. Students, for example, have limits on working hours per week. Always verify with your Ausländerbehörde or check the conditions printed on your Aufenthaltstitel before starting any employment, including a minijob.
Currently, minijob workers can opt in to making voluntary pension contributions to build up Rentenversicherung entitlements, but very few do. If long-term pension security matters to you, speak to the Deutsche Rentenversicherung about your options.
No. All minijobs must still be registered with the Minijob-Zentrale by your employer. This has not changed and is unlikely to change regardless of the political debate.
Minijobs are not going anywhere in the immediate future. Söder's public commitment adds significant political weight to their preservation, and the model remains one of the most accessible entry points into the German labor market for expats and immigrants. That said, if you are planning your long-term finances in Germany, think carefully about pension contributions and consider whether a minijob alone meets your needs.
Practical steps:
Source: Tagesschau
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