On the basis of the Act on Performance Improvements in the Statutory Pension Insurance, the upper limit for midi jobs was raised from 850 euros to 1,300 euros. The previous sliding zone was replaced by the transition area. The waiver of the application of the sliding zone regulation in order to prevent the pension-reducing effects is no longer necessary. Reduced pension insurance contributions no longer lead to lower pension benefits, because from now on the remuneration actually earned will be included in the pension calculation.
What do employers have to do?
The increase in the pay threshold will more than double the number of employees in this sector. Employers must re-examine the membership of the group of midi-jobbers for affected employees by making an up-to-date calculation of the regular monthly salary. One-off payments must also be taken into account. It must then be decided whether the employee’s remuneration will be in the transitional range in the future and whether reduced contributions will have to be paid as a result.
Notes in payroll and payroll accounting
The following groups of persons or the following scenarios are excluded from the special regulation of the transitional area:
- Trainees, interns, participants in dual study programs
- Marginally employed, short-term employed
- Pensioner
- Federal Voluntary Service
- in the case of reintegration measures after incapacity for work, provided that the remuneration before the measure was more than EUR 1,300.00
- Employment less than 450.00 euros
- if the limit of EUR 1,300.00 is exceeded as a result of several employments
The employees who are in partial retirement were previously excluded from the determination of the sliding zone. Due to a ruling by the Federal Social Court, these are to be taken into account in the determination from 01.07.2019.
It should be ensured that employees who have waived the application of the sliding zone in the pension insurance and were therefore also coded in the payroll accounting system in the same way will be recoded to the full application of the sliding zone as of 01.07.2019.
Since 01.07.2019, the actual remuneration for the pension insurance must also be shown in the DEÜV reports.
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