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New Proposals for German 'Mini Jobs'

Florian Gerster, who heads the Federal Labor Office, says that so-called "mini jobs" paying up to €325 a month should be exempt from all social insurance contributions. In an interview with the newspaper Die Welt, Gerster said this would radically lower costs for companies and make hiring employees more attractive for corporations. Gerster said his proposal could be financed by raising indirect taxes. He argued that the mini jobs could act as a platform for a return to a regular job. Employers offering the mini jobs currently have to pay over a flat rate of 12 percent for pension contributions and 10 percent for health insurance.