Marginal Employment in 2026 – Current Legal Requirements

What marginal employment is

The term “marginal employment” refers to a particular form of part-time work. In Germany, marginal employment is subject to specific statutory rules, which give certain groups of people a number of advantages.

An employment relationship is described as marginal employment when the monthly income from that job does not exceed a certain earnings limit and the employment is limited in time. In law, these two forms are called “Entgeltgeringfügigkeit” (marginal by earnings) and “Zeitgeringfügigkeit” (marginal by duration).

We have set out the basic characteristics of marginal employment for you here:

Earnings limit

The monthly gross income from marginal employment must not exceed a certain limit. Where the work is carried out regularly, the basic limit is €603.00 (as at 2026). In practice, however, only the annual limit of €7,236.00 is relevant. If this limit is exceeded by the end of the year, the advantages of marginal employment fall away.

Exemption from social security contributions

People in marginal employment are generally exempt from paying certain social security contributions. These include contributions to pension, health, long-term care and unemployment insurance. Instead, the employer pays flat-rate social security levies.

Working hours

Working hours in marginal employment are not laid down by law. However, the legal requirements of the employment act also apply to marginal employment. That means maximum working hours, rest periods and break times as well as the ban on working on Sundays and public holidays must still be observed. In addition, people in marginal employment must also be paid at least the minimum wage of €13.90 (from January 2026). Extrapolated, people in regular marginal employment may not work more than 43.4 hours per month.

Marginal employment can, however, also be carried out irregularly. That means people in marginal employment could also work the maximum monthly working time of 192 hours without dropping out of marginal employment, as long as the annual limit is not exceeded.

Secondary employment

Marginal employment can be carried out as a main job or as a second job. People who already have a main job can also take on marginal employment. Every second job, however, always has to be discussed with and confirmed by both employers.

Employment law rules

Despite the relief on social security contributions and the earnings limit, certain employment law rules also apply to people in marginal employment, as already mentioned. Alongside the German Working Hours Act (Arbeitszeitgesetz, ArbZG), these include the statutory minimum wage, the minimum vacation entitlement and youth employment protection.

Tax treatment

All income from marginal employment is subject to income tax. Special rules do apply, though. In many cases the tax is paid on a flat-rate basis by the employer. There are three different ways of paying this tax:

• The flat-rate tax. It applies in cases where employers make flat-rate pension insurance contributions. The flat-rate tax of 2% covers wage tax, church tax and the solidarity surcharge in total. On top of that, people in marginal employment have to pay their own pension insurance contribution of 3.6% out of their earnings (as at November 2024).
• The flat-rate wage tax. It can be considered where the flat-rate tax is not an option because no flat-rate pension insurance contributions are due. In that case the employer can tax an employment relationship with a wage of at most €603 per month at a flat rate of 20%.

Taxation can also be handled through individual taxation based on the electronic wage tax deduction characteristics.

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What types of marginal employment are there?

Social security law distinguishes between marginally paid employment and time-limited, short-term employment.

Marginally paid employment

In marginally paid employment, the monthly income of €603 must not be exceeded. The minimum wage rules have to be observed here. Spread across the year, a maximum of €7,236 must not be exceeded. As long as this annual figure is not exceeded, the monthly pay may also be higher than €603. If it is clear from the outset, however, that the employment will not last 12 months, the employer has to reduce the annual limit pro rata.

Short-term employment

If it is clear from the start of the employment relationship that the work will only last for a certain period (for example during the school or semester holidays), the obligation to pay social security contributions may fall away, depending on the level of pay.

If the period of employment is no longer than 3 months or 70 working days, no insurance contributions are due. This is referred to as short-term employment.

The three-month period applies where the work is carried out on at least 5 days a week, and the 70-day period where weekly employment is lower. This model can only be used in the context of seasonal work or something similar.

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Advantages and disadvantages of marginal employment

There are both advantages and disadvantages to marginal employment:

Advantages

Flexibility

Marginal employment or Minijobs often offer flexible working hours, which allows employees to combine their work better with other commitments such as family, studies or a main job.

Extra income

For people who already have a main job or are restricted in other ways, marginal employment can be a way of earning extra income to improve their financial situation.

A way into the job market

Marginal employment can be a way into the labour market. Especially for people who have little or no professional experience, marginal employment can be a good start. It allows employees to make their first work contacts and to learn important skills. That is why it is so popular among school pupils and students.

Flat-rate social security contributions

As mentioned above, employers only pay flat-rate social security contributions for people in marginal employment. That makes them more attractive, because these contributions are considerably lower than those for regular employees who are subject to social security contributions.

Disadvantages

Low income

Marginal employment naturally has its limits too. The earnings limit is set in such a way that the pay is not enough for financial security. That is why these jobs are also seen as secondary work, since a main job is needed for financial security.

Limited social benefits

People in marginal employment often have no entitlement to certain social benefits such as unemployment benefit, sick pay or a company pension scheme, which can be a financial risk if they are unable to work for whatever reason.

Career disadvantage

Marginal employment generally offers fewer development opportunities and chances of promotion than regular full-time or part-time positions. Career development is therefore fairly limited. Because of the small number of hours, people in marginal employment are also less attractive to companies when it comes to training programmes. The likelihood of companies investing in the training of people in marginal employment is therefore low.

Insecurity

People in marginal employment often have no long-term job security. Because their employment often depends on seasonal fluctuations or the employer's needs, it is either limited from the outset or there is a general risk of early termination.  This can cause insecurity and stress.

Tips for employees

Know your own rights and obligations

As an employee you should definitely look into your rights and obligations in advance. These include maximum and minimum working hours, the current minimum wage, your vacation entitlement and the notice periods. This blog article gives you a good basis for that. Even so, find out more about your individual situation so that you can raise all the important points when negotiating your employment contract.

Flexibility and reliability

Show your employer flexibility and reliability at work. That makes a positive impression and shows that you can be deployed in many ways. Particularly where your employment depends on the volume of work coming in, you can secure your job by making it possible for your employer to use you elsewhere or at other times when needed.

Make use of training opportunities

In marginal employment you have more time than your full-time colleagues. If you can, you should use that time for training opportunities in order to improve your skills and qualifications. Above all, that improves your long-term employment prospects.

Financial planning

Within marginal employment you will never earn more than €7,784.00 a year. That is considerably less than in other part-time or full-time positions. So plan your finances carefully and be aware that marginal employment may not be enough to cover all your financial needs.

Networking

Marginal employment can be a first stepping stone into your career. So use the opportunity to make contacts at work in order to broaden your professional perspectives and discover potential career opportunities. Especially if you are a student or school pupil topping up your pocket money, you should not underestimate the Minijob as a platform for networking.

Tips for employers

Clear communication

As an employer, you should communicate clearly and be transparent with your employees in marginal employment. Clarify working conditions, tasks and expectations in advance to avoid misunderstandings. If you hire school pupils or students, they may be in an employment relationship for the first time and therefore need a little more induction and more detailed communication.

Encourage a positive working environment

Create a positive working environment that encourages the motivation and commitment of people in marginal employment. Appreciate their contributions and encourage collaboration. They may not be there as often as other employees, but their contribution is just as valuable as that of their colleagues.

Fair treatment

Treat people in marginal employment fairly and with respect, regardless of their employment status. Offer them the same opportunities for professional development as other employees. Who knows what a marginal employment relationship can turn into.

Regular feedback

Give your employees in marginal employment regular feedback too, and encourage open communication, in order to improve their performance and address possible problems early.

Keep track of your employees with digital tools

To keep track of your employees' various employment relationships, and in particular to keep an eye on workload and maximum working hours, we recommend clockin as an app for digital time tracking.

With clockin your employees can record their working hours easily on the go via the app. That is a big advantage in flexible employment relationships with the option of working from home.

The app also lets you take different working time models or contract types into account. You can set the maximum number of hours laid down in the employment contract individually for each employer, which gives you a constant overview of their workload.

Thanks to integrations with payroll systems, clockin automates your billing and makes sure that all legal requirements are met, which reduces administrative effort and minimises errors.

What is more, real-time analytics on working hours, costs and project hours let you make well-founded decisions with clockin and increase your company's productivity.

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