What changes are coming to Minijobs in Germany in 2026?

What’s Changing with Minijobs in Germany in 2026?

Each year, the income threshold for Minijobs — the amount a person can earn before being taxed — is adjusted in Germany. However, additional significant changes are set to take effect in 2026, particularly for pensioners. Here’s an overview of what’s coming.

New Minijob Income Limits from 2026

Starting January 1, 2026, employees with a Minijob contract in Germany will be allowed to earn up to €603 per month before their income becomes taxable. This increase in the tax-free limit corresponds with the rise in Germany’s minimum wage, which will go up from €12.41 per hour in 2025 to €13.90 per hour in 2026.

As a result, Minijob workers earning minimum wage will be able to work up to 43 hours per month without paying taxes.

Impact on Students, Pensioners, and Bürgergeld Recipients

Minijobs are most common among students, pensioners, and individuals receiving Bürgergeld (unemployment benefit). However, starting January 1, 2026, Bürgergeld will be renamed “basic security money” (Grundsicherungsgeld) — and claimants will face stricter tax rules on their Minijob earnings.

Under the new system:

• The first €100 of Minijob income will remain tax-free.

• 20% of income between €101 and €520 will be tax-free.

• 30% of income between €521 and €2,000 will be tax-free.

Anyone earning more than €603 per month will no longer qualify for a Minijob; instead, their employment will be classified as a Midijob.

Introduction of “Active Retirement” (Aktivrente)

Traditionally, Minijob rules applied equally to students, pensioners, and Bürgergeld recipients. From January 2026, however, a major shift will take place with the launch of Aktivrente (“active retirement”).

This new initiative will allow retirees to earn up to €2,000 per month without being subject to income tax — a significant increase compared to current limits.

The move comes as Germany faces a demographic challenge: declining birth rates and an aging population. According to the German Institute for Economic Research (DIW), around 4.7 million workers are expected to leave the labor force between 2024 and 2028.

To counter this labor shortage, the CDU/CSU-SPD government aims to encourage older workers to remain active in the job market through the Aktivrente program.

In Summary

• Minijob limit: €603 per month (from January 1, 2026).

• New benefit name: Bürgergeld becomes Grundsicherungsgeld.

• Pensioners: Eligible to earn up to €2,000 tax-free under the new Aktivrente scheme.

These changes are part of a broader effort by the German government to balance social support with labor market needs — and to make it more attractive for retirees to continue contributing to the workforce.