Berlin. Christoph Schmidt, head of the RWI – Leibniz Institute for Economic Research in Essen, has called for a fundamental reform of Germany's "mini-jobs."
Germany's mini-jobs system faces calls for radical reform or abolition
"Mini-jobs are problematic from a regulatory perspective because their tax and social security exemptions create perverse incentives," Schmidt told the Rheinische Post (Monday edition). "They particularly discourage secondary earners and encourage side jobs instead of additional regular working hours." He argued that the state should not favor specific employment models. "A more consistent approach would be either to abolish mini-jobs altogether or restrict them to students, pupils, and retirees."
Ahead of the CDU's federal party conference, the party's labor wing, the Christian Democratic Employees' Association (CDA), is pushing for mini-jobs to be converted into standard employment contracts.
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