Paying bonuses in a minijob can trigger social security liability. It is therefore essential to know how and to what extent such a bonus can be paid without falling into social security liability.
Minijobbers: Bonuses on Top of Wages and Salary
In addition to the basic wage, one-off payments, ongoing allowances, bonuses or similar income may also be earned in a minijob. It should be noted that social security liability is only waived if the additional income is exempt from wage tax. In particular, bonuses for Sunday, public holiday or night work are only tax-free if they are paid in addition to the basic wage. When paying out such bonuses, the limits set out in § 3b Abs. 1 Nr. 1–4 EStG must also be observed.
Taxable Bonuses Are Subject to Social Security Contributions
If bonuses are paid without any actual work being performed, they are generally considered taxable. Tax liability typically also means the loss of social security exemption. Minijobbers are particularly affected during the employment ban under maternity protection rules, as are employees during continued remuneration in cases of incapacity to work.
Loss of Social Security Exemption When the Basic Wage Is Too High
Social security exemption for bonuses paid for Sunday, public holiday or night work is lost if the assessment basis for the bonus exceeds €25 per hour (§ 1 Abs. 1 SvEV). If the wage is higher, however, only the amount exceeding €25 is subject to social security contributions. In practice, the hourly wage in minijobs is generally below €25 per hour, making social security liability due to an excessive basic wage unlikely.
Frequently asked questions
Frequently asked questions
Are bonus payments in a mini-job exempt from social security contributions?
Bonus payments in a mini-job are only exempt from social security contributions if they are also exempt from wage tax. In particular, bonuses for Sunday, holiday or night work must be paid in addition to the base wage and must comply with the limits set out in § 3b Abs. 1 Nr. 1-4 EStG. If these requirements are not met, social security contributions become mandatory.
When do supplements in a Minijob become taxable?
Supplements become taxable if they are paid without an actual work performance being rendered. This typically applies to payments during the employment ban under maternity protection or during continued remuneration in case of illness. Once they are taxable, these supplements generally also lose their exemption from social security contributions.
What hourly wage limit applies to social-security-exempt Sunday, holiday, and night-work bonuses (SFN)?
Under § 1 Abs. 1 SvEV, the social security exemption for Sunday, holiday, and night-work bonuses no longer applies if the calculation base exceeds €25 per hour. Only the portion above €25 is then subject to social security contributions. For mini-jobs, this threshold is rarely relevant in practice.
Must SFN supplements be paid in addition to the base wage?
Yes, supplements for Sunday, public holiday, or night work are exempt from tax and social security contributions only if they are granted on top of the base wage. Offsetting them against the base wage is not permitted. Otherwise, the supplements lose their tax and contribution exemption.
Are bonuses subject to social security contributions during maternity leave or illness?
Yes. Because no actual work is performed during these periods, the continued bonus payments become taxable. Once the tax exemption no longer applies, the exemption from social security contributions generally ceases as well. For mini-jobs, this may cause the marginal earnings threshold to be exceeded, triggering mandatory contributions.