Marginal employment

In Germany, marginal employment (German: geringfügige Beschäftigung, also called a mini job or €450 job) is, according to its social security law, an employment relationship with a low absolute level of earnings or of short duration.

In March 2009 there were about 4.9 million people[1] in €450-a-month tax-free "mini jobs".[2]

Mechanism

In 2002 the Hartz commission recommended a series of measures to revitalise the German economy, known collectively as the Hartz concept. Gerhard Schröder implemented it as part of his Agenda 2010 reforms. Mini jobs were introduced as part of Hartz II, which took effect on 1 January 2003. At the time Germany had no minimum wage, which was not introduced until 2015.[3]

Those whose main job is a mini-job still contribute to the national retirement pension insurance. The employee pays 3.7% and the employer pays 15%. They contribute neither to the national health insurance funds nor for unemployment coverage. They can either be covered by the health insurance of a higher earning partner (or parents, for students up to 25 years of age) or contribute voluntarily at a flat rate of €140 per month.

Spain

On 7 December 2011 it was reported that the European Central Bank sent a letter in August to José Luis Rodríguez Zapatero's government, suggesting that Spain implemented a mini jobs job category with salaries of €400, a value considerably lower than Spain's minimum wage of €641. This suggestion was presented as a condition for the European Central Bank to continue purchasing Spain's debt.[4]

United Kingdom

In the United Kingdom about 1.4 million people work under zero-hour contracts, with no guaranteed hours of work. A person earning under £5,772 a year receives no credits for the state pension.

In 2012, Justice Minister Liz Truss championed the idea of Britain following Germany's lead in allowing people to have tax-free and less-regulated mini jobs.[5]

See also

References

  1. ↑ Hinrichs, Karl; Jessoula, Matteo (2012-04-05). Labour Market Flexibility and Pension Reforms: Flexible Today, Secure Tomorrow?. Palgrave Macmillan. p. 38. ISBN 9780230307605.
  2. ↑ Connolly, Kate; Osborne, Louise (30 August 2013). "Low-paid Germans mind rich-poor gap as elections approach: With no national minimum wage and a fifth of workers in insecure mini-jobs, critics say German prosperity is being built on exploitation of the downtrodden". The Guardian. Berlin. Retrieved 31 August 2013.
  3. ↑ "Angela Merkel approves Germany's first minimum wage". BBC News. 2 April 2014.
  4. ↑ "Trabajo: 400 Euro Basis - Mini Job. Con o sin Krankenkasse....Keine Ahnung! :S | Spaniards.es, la Comunidad de Españoles en el Mundo" [Employment: 400 Euro Basis - Mini Job. With or without Health Insurance - No Idea!]. www.spaniards.es (in Spanish). Retrieved 2015-12-21.
  5. ↑ Jowit, Juliette (19 August 2012). "Treasury considers bid to boost employment with tax-free 'mini-jobs'". The Guardian. Retrieved 2012-09-08.


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