I've been reading in The Week that Germany has a special system for part-time low paid jobs. Basically you can earn up to €400 per month, the employer pays 25%, and there are no taxes or anything more on either side. A lot less complex than regular employment. The kicker, though, is that in Germany there's no minimum wage, and so Germany is developing a class of working poor. But if the minimum wage were respected, what if this system were introduced over here? Someone could have two mini-jobs and have a full working week. For instance working mornings in one place and afternoons in another. Or, further up the pay scale, a contractor might have a regular 1 or 2 days per month at a client site.
What do Urbanites think of the U.K. adopting Germany's mini-jobs system?
- Thread starter Quartz
- Start date
Monkeygrinder's Organ
Dodgy geezer swilling vapid lager
I don't quite get it - the employer pays 25% of what?
Mrs Magpie
On a bit of break...
I've seen this in action. Seemed good. If it's the same deal a lot of voluntary groups use it. I saw it being used for a sort of second-hand goods shop/recycling/training up and securing jobs near Bad Essen.
Mrs Magpie
On a bit of break...
I think the employer pays 25% of the wage.
Thora
Differently Ethical
Doesn't the employer way 100% of the wage? Seeing as they are employing someone.
Not a fan. Before the mini job thing came in, there were very few working poor people in Germany. There are a lot more of them now.
25% of the E400 a month. Basically, the government is paying businesses to give people work they can just about live on.
Thora
Differently Ethical
But the employer pays 400 euros, plus some on top for social security. In Germany anyway. The employee gets 400 euros net.
Mrs Magpie
On a bit of break...
The scheme I saw was being run by a charity employing people with learning disabilities, recovering alcoholics etc.
Yes, but isn't that because of the lack of a minimum wage? What if the minimum wage were kept?
If the minimum wage were kept, IMHO it'd still be a bad idea. Why should businesses be subsidised to provide part time work? AFAIK it's cheaper & less risky to provided than fulltime employment because it doesn't provide the same employee protection and/or rights as a permanent full time job.
Thora
Differently Ethical
Or am I misunderstanding you and it's 25% again of the 400 in social security - so costs the employer 500?
The employer pays out 400, the state refunds 300 to the employer. AFAIK the employee receives 400 and that's below the income tax bracket.
From what I read, the employer pays the employee up to €400, and 25% of that (i.e. up to €100) to the government.
Monkeygrinder's Organ
Dodgy geezer swilling vapid lager
Ok I've googled this and as far as I can tell the employer pays 25% tax and the worker gets the 400. It doesn't seem to be a subsidized employment scheme.
Thanks for that.
Even so, if that were brought in over here, there'd be no extra money for the government (from income tax), and if both the employer and employee weren't required to pay NI that could have serious consequences for contribution related benefits (pension, materenity pay, one type of JSA etc).
Thora
Differently Ethical
Why does the employer have to pay insurance/social security then if money is refunded?
Are you talking about the UK or Germany?
Thora
Differently Ethical
Ah sorry, see that's been answered.
£400 a month is under the tax threshhold though anyway isn't it? And if it's based on the German model then the employer pays for health insurance, unemployment insurance and maternity insurance anyway (iirc).
Thora
Differently Ethical
Germany. But I see now others have said 300 euros isn't refunded to the employer.
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