Subsidies also for mini-jobbers
An additional pension is especially important for mini-jobbers. However, the fewest low-income earners are aware that even mini-jobbers with earnings of up to 450 euros can benefit from Riester subsidies.
The following prerequisites must be fulfilled for this:
- Mini-jobbers must be compulsorily insured in the statutory pension insurance scheme: this has been the case for mini-jobs since 2013.
- They also have to pay their own contribution towards the pension insurance. Since the employer pays a lump sum of 15 percent to the pension insurance for mini-jobbers, mini-jobbers only have to pay the difference of 3.7 percent to the full pension insurance contribution of 18.7 percent. At 450 euros, that's 16.65 euros per month. In the case of mini-jobs in private households, the employer's flat-rate levy amounts to five percent. Mini-jobbers would have to pay a difference of 13.7 percentage points or 61.65 euros per month at 450 euros per month.
- Mini-jobbers must also pay a minimum contribution into the Riester contract in order to receive the full amount of the allowances. 4 percent of the previous year's income minus the bonus, but at least 60 euros per year. With a monthly salary of 450 euros, the minimum contribution is therefore 62 euros per year.
The total amount of the grant consists of a basic allowance of 154 euros and a child benefit of 300 euros for children born after 2008 and 185 euros for children born before 2008.
Further advantages: With the additional payments into the state pension, not only the pension rights increase. Mini-jobbers can even make use of medical or vocational rehabilitation services. In addition, the contributions are tax-deductible as special expenses.
Source: This report is part of the series "Finanzwissen für alle" by the BVI Federal Association of Investment and Asset Management e.V.
