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Sample letter for employees (MS Word / docx file)Download
The following changes enter into force with the Minimum Wage Increase Act on 1 October 2022:
Minimum Wage Increase Act
From 1 October 2022, the minimum wage rises from EUR 10.45 to EUR 12, and the marginal earnings threshold is adjusted from EUR 450 to EUR 520. As a result of this adjustment, employees earning between EUR 450 and EUR 520 are classified as mini-jobbers after 1 October 2022 and are no longer subject to compulsory insurance.
Grandfathering rule
The legislator has introduced a grandfathering rule for this situation. Affected employees may decide for themselves how their contributions are assessed.
Employees subject to compulsory insurance with regular monthly earnings of EUR 450.01 to EUR 520 remain, on grounds of grandfathering, until 31 December 2023 subject to compulsory insurance in the health, long-term care and unemployment insurance schemes. No grandfathering applies in the pension insurance scheme; from 1 October 2022, these employees move into the flat-rate accounting for marginal employment.
The affected employees may apply in writing to their employer to be exempted from compulsory insurance. To reduce administrative effort, the application for exemption does not need to be filed with the responsible insurance carriers.
If the employee submits the application for exemption from compulsory insurance in the health, long-term care and unemployment insurance schemes to the employer by 2 January 2023, the exemption takes effect retroactively from 1 October 2022. Retroactive exemption in the health and long-term care insurance schemes is only possible if no benefits have been claimed up to that point in time.
After 2 January 2023, exemption from compulsory insurance in the health and long-term care insurance schemes can no longer be applied for. In the unemployment insurance scheme, however, an exemption applied for after 2 January 2023 takes effect from the beginning of the calendar month following the calendar month of the application.
On 1 October 2022, employers should ask their affected employees whether they wish to make use of the option to be exempted from compulsory insurance.
You can use the sample letter for employees to enquire about the contribution assessment.
Sample letter for employees (MS Word / docx file)Download
Please understand that we must bill our services in connection with these new rules as a special service on a time-and-effort basis, since the review and any necessary adjustments represent additional work for us. If you have any questions, please contact us. We are happy to explain the background in a personal meeting and answer your questions.
Sample letter – copy raw text
Mr/Ms Sample Sample Street XXX XXXXX Sample City Date (please fill in) Grandfathering rules for employees in the EUR 450 to EUR 520 range from 1 October 2022 Dear Ms/Mr Sample, You are currently employed in a so-called midi-job with earnings in the EUR 450 to EUR 520 range and are subject to compulsory insurance in the health, pension, long-term care and unemployment insurance schemes. The following changes enter into force with the Minimum Wage Increase Act on 1 October 2022: Minimum Wage Increase Act From 1 October 2022, the minimum wage rises from EUR 10.45 to EUR 12, and the marginal earnings threshold (mini-job) is adjusted from EUR 450 to EUR 520. This means that from 1 October 2022, compulsory insurance in your employment relationship will, in principle, cease to apply. Grandfathering rule The legislator has introduced a grandfathering rule for this case. You may decide for yourself how your contributions are assessed. Due to grandfathering, you remain subject to compulsory insurance in the health, long-term care and unemployment insurance schemes in your employment until 31 December 2023. However, you may apply to your employer to be exempted from compulsory insurance in the health, long-term care and unemployment insurance schemes. If the respective application is submitted by 2 January 2023, the exemption takes effect retroactively from 1 October 2022. Retroactive exemption in the health and long-term care insurance schemes is only possible if no benefits have been claimed up to that point in time. After 2 January 2023, exemption from compulsory insurance in the health and long-term care insurance schemes can no longer be applied for. In the unemployment insurance scheme, however, an exemption applied for after 2 January 2023 takes effect from the beginning of the calendar month following the calendar month of the application. If you wish to be exempted from compulsory insurance, please let us know, stating the date from which the exemption is to take effect. If you have any questions, please contact us. We are happy to explain the background in a personal meeting and answer your questions. Kind regards
Frequently asked questions
Frequently asked questions
What changes on 01/10/2022 regarding minimum wage and the marginal earnings threshold?
As of 01/10/2022, the statutory minimum wage rises from EUR 10.45 to EUR 12 per hour. At the same time, the marginal earnings threshold for mini-jobs is raised from EUR 450 to EUR 520 per month. Employees earning between EUR 450.01 and EUR 520 are therefore generally classified as mini-jobbers.
What does the grandfathering rule for employees earning EUR 450.01 to EUR 520 stipulate?
Employees who were previously subject to mandatory insurance with earnings between EUR 450.01 and EUR 520 remain subject to mandatory health, long-term care, and unemployment insurance until 31 December 2023 under grandfathering provisions. Grandfathering does not apply to pension insurance; here, employees automatically switch to the flat-rate accounting for marginal employment as of 1 October 2022.
How can employees apply for exemption from compulsory insurance?
Affected employees can apply for exemption from compulsory health, long-term care and unemployment insurance by submitting a written request directly to their employer. No application to the insurance providers is required. The employer processes the exemption internally.
By when must the exemption application be filed to apply retroactively to 01.10.2022?
The application must be received by the employer no later than 02.01.2023 for the exemption to take effect retroactively to 01.10.2022. However, retroactive exemption from health and long-term care insurance is only possible if no benefits were claimed up to that date.
What are the consequences of an exemption application filed after 02 January 2023?
After 02 January 2023, exemption from compulsory insurance is no longer possible in statutory health and long-term care insurance. In unemployment insurance, an exemption applied for at a later date only takes effect from the beginning of the calendar month following the application.
What should employers specifically do as of 01.10.2022?
Employers should actively ask affected employees in the pay range of EUR 450.01 to 520 whether they wish to make use of the exemption option. A written notice is recommended, informing them about grandfathering protection, deadlines, and consequences. The employees' decision must be documented and implemented in payroll accounting.