Midi-Jobs (Gleitzone) in Germany

Gleitzone (Midi Job) is a term very commonly used in Germany and refers to an
employment concept practiced by many. To prevent unfavorable treatment of those
who earn just a little more than the insurance-free mini-job, the German federal
government introduced midi-jobs in 2003. But to start, we first need to understand
what Midi-Jobs are. This article will help you discover all you need to know about
Midi-Jobs in Germany.

Defining a Midi-Job
Midi-Job denotes a form of marginal work that serves as a kind of transitional area.
In other words, increasing social contribution obligations and variable Steuersatz (tax
rates). The salary package for a midi jobber usually ranges from €520.01 to
€2,000.00.

Another term used as German a synonym of Midi Job is “Gleitzone.” It refers to the
sliding contribution scale that applies in this employment type. In such occupations,
you pay a modest portion of your earnings to social security.

One primary advantage of midi-jobs is that your health insurance, sick leave,
unemployment, and pension benefits are fully covered. Employees are required to
contribute the whole amount to social insurance if the monthly salary exceeds €909.

The amount of insurance a person has to pay depends on how much money they
earn, although midi-jobs are also insurable. Payment of care allowance and
unemployment insurance is not always required if pension contributions are in the
neighborhood of or between 11 and 12 percent.

In addition, reduced employee contributions are paid up to the amount of the upper
limit of the permitted earnings. This prevents lower Rentenleistungen (pension benefits) from being the result of reduced pension contributions. However, income and payroll tax (Lohnsteuer and Einkommensteuer) must be paid.

Working as a Midi-Jobber in Germany
As mentioned earlier, a midi-job in Germany is a work arrangement where a person
earns 520.01 to 2000.00 euros per month. Simply put, a midi job starts where a mini-
job ends. To replace the word midi job, phrases such as “employment in the sliding
zone,” or “employment in the transition region” are also used.

These phrases emphasize the basic concept of a midi job: the employee has a real
earning margin thanks to the above upper and lower limits. If an employee works in
multiple positions, the amount of money earned will determine how the employment
relationship is classified.

Who is eligible to work as a midi-jobber in Germany?
In general, midi-jobs are open to anyone who is legally authorized to work in
Germany. Even international students are eligible for a midi-Job. However, you will
need to ensure the hours worked do not conflict with your student visa restrictions. In
addition, foreign nationals in Germany can work in midi-jobs if they have a work visa
or residence permit.

Therefore, a person must comply with certain visa requirements to work in Germany.
Keep in mind, that according to law, no more than 120 full or 240 half days may be
worked in a calendar year. By working illegally, many foreigners end up violating
them. However, if caught, both the employer and the employee are arrested and
dealt with. Workers can also be occasionally deported if they break the law, don’t pay
taxes, or don’t have the proper paperwork for their employment.

Taxation Process Over Midi-Jobs in Germany

In Germany, midi-jobs are viewed as a form of “transitional” employment. Employees
who work a midi-job make between 520.01 and 2,000 euros a month.
The mini-jobber will be responsible for paying tax and social contributions in
progressive amounts determined by a formula.

Difference between a Mini-Job and a Midi-Job
You might wonder if the mini-job and midi-job are the same. Here is the difference:

Mini-Job

• A mini-job is a part-time position for
  which your monthly salary cannot exceed
  €520.
• Net Salary is equal to Gross Salary
• Mini-jobbers are exempted from
  contributing to social security.
  They are also exempted from paying for
  long-term care and unemployment
  insurance. On request, you can also be
  exempted from the pension insurance.
  You have the same labor rights as other
  employees if you work a mini-job.

Midi-Job

• A midi job in Germany is an employment
  contract where the employee makes
  between 520.01 to 2,000.00 euros per
  month.
• Net Salary is equal to Gross Salary Net Salary is equal to the Gross salary after deducting social contributions.
• A midi-job is subject to social security contributions as compared to a mini-job. Those with midi-jobs contribute less to pension, health, nursing, and unemployment insurance. So, midi-jobbers, too, have a right to pension protection.

Are Midi-Jobbers benefiting from the new legislation?
It is strongly emphasized that the new legislation will benefit all part-time workers
who rely on the newly adopted transition region for their livelihood. This mostly
affects women, as they make up more than 80% of part-time workers in Germany.

For this reason, according to Wundertax, a midi-jobber who was earning €850 in the
year 2020 would still be burdened with the typical tax rate of around 20% common to
insured employees. The employer must state the amount in the compensation
statements so that the pension insurance agencies can use the transition pension
calculation when computing the actual remuneration.

However, from July 2020, shares of equal compensation with equal pay continued to
be less than 18%. While, employees who receive a monthly salary of more than
2,000 euros will be required to pay the tax burden in full.

The maximum wage for Midi-jobs has so far increased from €850 to €1,300 following
a law passed in July 2019. The new proposed law stipulated that compensation
increased again in October 2022, while the minimum wage was raised to €12. Both
Mini-jobs, whose monthly salary has increased from 450 to 520 euros, and Midi-jobs,
whose monthly salary has risen to 1,600 euros, will benefit from this increase.

Advantages of Midi-Jobs

1. You’ll contribute less to Social Security as a midi jobber while still receiving
   your full pension.
2. Midi-jobber income tax is only payable in certain circumstances. If you only
   have a midi job and fall into tax categories 1, 2, or 4, you will not have to pay
   income tax if your annual income does not exceed €10,908 per year (as per
   2023). Regardless of what income you generate, if it’s your only job, you won’t
   pay any taxes if you’re in the tax bracket
3. You’ll immediately fall into tax bracket 6 if it’s your second job. You’ll pay
   income tax accordingly, with any other circumstances that place you in tax
   brackets 5 or 6. 4. You still have full coverage and pay less for health and
   long-term care insurance.
4. Even if you pay a lower unemployment insurance rate, you’ll still receive 60%
   of your average net earnings for the previous 12 months (or 67% if you have
   children) if you’ve worked at a regular job for at least 12 months in a row.

Why do people prefer Midi-Jobs?
Due to the time and financial constraints of the latter, many workers choose midi–
jobs instead of Mini-jobs. Mini-jobs have short-term contracts and are now limited to
520 euros per month in salary. This is what makes mini-jobs popular, specifically
among students. However, many employees prefer midi-jobs despite their
disadvantages.

The same benefits that come with full-time employment, such as paid holidays and
sick days, are also part of the Midi-job contract. Midi-jobs can therefore be
considered a transitional phase (Übergangsbereich) between Mini-jobs and full-time
employment.

The income of Midi-jobbers increased when the laws for Midi-Jobs changed in July 2019. They were allowed to work up to 133.30 hours per month for a minimum wage
of €12 per hour. Their maximum monthly salary can therefore be 2000 euros. Social
Security benefits are calculated using techniques that predated the 2019 law, despite
the increase in income.
As a result, midi-jobbers can benefit from tax relief for social benefits. Most of the tax
relief goes to those who earn between €850.01 and €1,300 a month. As the salary
increases during the transition period, the tax relief decreases.

A good 80% of working women would work part-time with few hours due to mini and
midi-job reform, as they would be more rewarding.

How to get a Midi Job in Germany?
Finding a decent midi job in Germany might seem like a task, but here’s what you
can do to ease your search.
First and foremost, the best platform for finding good jobs is LinkedIn. It is one of the
best sources available and can help you get a midi job.

Conclusion
In short, As the name suggests, Midi-Jobs are a middle way of working a full-time
and mini-job job. The only difference that appears is the tax and social contribution
fee between the two kinds of employment. Working at a Midi-Job might seem like a
great opportunity for international students in Germany. With the increase in the
monthly wage of the midi-jobber, it might be a great opportunity to get yourself a
midi-job and reward yourself with the benefits!