Practical Guide to Working & Earning in Germany
This guide is designed to change that. It is written specifically for international students to provide a clear, accurate, and comprehensive overview of how student employment works in Germany. It will demystify the two primary employment models you will encounter—the Minijob and the Werkstudent (working student)—and explain the critical rules that apply to you.
Unlike a conventional gross-to-net calculator, which is designed for regular employees, a student’s salary is subject to a unique set of exemptions and obligations. This guide will walk you through these special regulations step by step. By understanding the context behind the numbers, you can use the salary calculator above as an effective tool for financial planning, ensuring there are no surprises when you receive your first payslip.
- For a complete overview of the rules, you can consult the official guidelines on the Make it in Germany portal.
- For all official regulations, forms, and calculators related to Minijobs, the Minijob-Zentrale is the definitive source.
- To understand the long-term benefits of pension contributions, refer to the Deutsche Rentenversicherung’s official guide for students.
- You can find detailed cost breakdowns and apply for coverage directly with public health insurance providers like Techniker Krankenkasse.
The Golden Rule: Your Visa Sets the Limits (The 140-Day Rule)
Before examining any salary or tax details, the most important regulation for any student from a non-EU/EEA country is the work limitation stipulated on the residence permit. This rule constitutes the absolute legal framework governing your right to work in Germany and should be your primary consideration.
Under German law, international students holding a residence permit for study purposes (§16b of the Residence Act, or Aufenthaltsgesetz) are permitted to work for a maximum of 140 full days or 280 half days per calendar year. This allowance is an increase from the previous 120/240-day rule and has been in effect since March 1, 2024.
The distinction between a full and half day is precise:
- A half day is any day you work for up to 4 hours.
- A full day is any day you work for more than 4 hours.
It is crucial to understand that this visa-based work limit is the master rule that supersedes all other employment regulations regarding work volume. The rules about being a Minijobber or Werkstudent are part of the German social security code; they determine how your salary is treated for tax and insurance purposes, but they do not grant you the right to work in the first place. Your right to work is granted by the Foreigners’ Authority (Ausländerbehörde), and violating the 140-day condition can jeopardize your residence permit.
This structure has significant strategic implications for how you can schedule your work. The way you structure your weekly hours directly impacts how quickly you exhaust your 140-day annual allowance. For instance, consider two students who both work 20 hours per week.
- Student A works 4 hours per day from Monday to Friday. This schedule uses 5 full days of their 140-day allowance each week.
- Student B works 10 hours per day on Saturday and Sunday. This schedule uses only 2 full days of their allowance.
Although both students work the same number of hours, Student B can work for more weeks of the year before reaching their visa limit. This is a critical point for students who wish to maximize their work potential throughout the year.
Exemptions from the 140-Day Rule
Certain types of work are excluded from this 140-day limit. These specific exemptions are designed to encourage activities closely related to your academic program:
- Mandatory Internships: Internships that are a required and integral part of your university degree program are completely exempt.
- Student/Academic Assistant Jobs: Employment as a student or academic assistant directly at your university or a related scientific institution is also exempt from the limit.
However, any voluntary internship that is not a formal requirement of your studies does count against your 140-day allowance.
The Two Paths of Student Employment: Minijob vs. Werkstudent
Once you are operating within your visa’s 140-day limit, your employment will fall into one of two categories based on your monthly income. The dividing line is the Minijob income threshold, which is set at per month for . Understanding which category you fall into is essential, as it determines your obligations regarding social security contributions and taxes.
The table below provides a high-level comparison of these two paths.
| Feature | Minijob | Werkstudent (Working Student) |
|---|---|---|
| Monthly Income | Up to | Above |
| Weekly Hours (Semester) | Not strictly limited, but practically capped by the income limit (approx. 43 hours/month at minimum wage) | Limited to 20 hours/week to maintain student status |
| Health, Care & Unemployment Insurance | Exempt from contributions | Exempt from contributions (“Working Student Privilege”) |
| Pension Insurance | Mandatory contribution (3.6% by student), but can opt-out | Mandatory contribution (9.3% by student) |
| Income Tax | No income tax deducted from salary | Deducted monthly, but often fully refundable |
Path 1: The “Minijob” – Earning Up to per Month
A “Minijob” is a form of marginal employment where your earnings do not exceed a set monthly limit. For the year , this limit is per month, which corresponds to an annual limit of . This threshold is dynamically linked to the statutory minimum wage, which is currently per hour.
The main attraction of a Minijob is its simplicity and the low level of deductions. As a Minijobber, you are exempt from making contributions to three of the four main pillars of German social security: health insurance, long-term care insurance, and unemployment insurance. Your employer pays small flat-rate contributions for these on your behalf, but nothing is deducted from your salary.
The Pension Insurance Decision: To Pay or To Opt-Out?
The one area where Minijobbers do have an obligation is pension insurance (Rentenversicherung). By default, you are required to contribute 3.6% of your gross earnings to the state pension fund, while your employer contributes a much larger flat rate of 15%.
However, you have the right to opt-out of this obligation. You can do this by submitting a formal written request to your employer, which will exempt you from paying your 3.6% share. For an income of , this would increase your take-home pay by about €20.
While opting out seems like an easy way to maximize your monthly income, it is essential to consider the long-term implications. The German pension system requires a minimum number of contribution months, known as the qualifying period (Wartezeit), to be eligible for any future pension benefits. By paying this small contribution, you are “buying” a full qualifying month in the German pension system. For students who may consider working in Germany or another EU country after graduation, accumulating these qualifying periods early on can be incredibly valuable. The decision is not just about a small amount of money today; it is a strategic choice about your long-term social security.
Path 2: The “Werkstudent” – Earning More Than per Month
If your regular monthly income exceeds the Minijob limit, you enter the world of the “Werkstudent,” or working student. This status comes with a significant benefit known as the “Working Student Privilege” (Werkstudentenprivileg). This privilege means that even though you earn more than a Minijobber, you remain exempt from contributions to health, long-term care, and unemployment insurance.
The 20-Hour Rule: The Key to the Privilege
This valuable exemption is conditional. To maintain it, your studies must remain your primary activity. The German social security system enforces this through a strict work-time regulation: you may not work more than 20 hours per week during the university lecture period.
It is critical to understand that this 20-hour rule is a social security rule, not a visa rule. Its purpose is to differentiate between a “student who works” and an “employee who studies.” If you exceed the 20-hour weekly limit during the semester, you lose your privileged status and are reclassified as a regular employee. This would make you liable for the full share of all social security contributions, which would be a significant and costly deduction from your salary.
During the official semester break (vorlesungsfreie Zeit), this rule is relaxed, and you can work up to 40 hours per week without losing your Werkstudent status.However, there is an annual cap: you must not work more than 20 hours per week for more than 26 weeks (182 calendar days) in total over a one-year period.
Mandatory Pension Contributions for Werkstudenten
Unlike in a Minijob, there is no option to opt-out of pension insurance as a Werkstudent. You are fully liable for contributions. The total contribution rate is currently 18.6% of your gross salary, which is split equally between you and your employer. This means 9.3% will be deducted from your monthly salary for pension insurance.[
Your Biggest Fixed Cost: Navigating German Health Insurance
One of the most significant errors in understanding student finances in Germany relates to health insurance. For international students, especially those from outside the EU/EEA, the situation is straightforward but non-negotiable: you must have your own German health insurance policy. It is a mandatory requirement for obtaining and maintaining your student visa.
The concept of being covered by family insurance (Familienversicherung), which is common for German students, is generally not applicable to international students, as their parents are not insured within the German statutory system.
The standard option is the public student health insurance scheme, known as Krankenversicherung der Studenten (KVdS). The cost for this is paid directly by you from your bank account each month; it is not an employer deduction. For , the total monthly premium—which includes both health and long-term care insurance—is approximately €130 to €145. The exact amount can vary slightly based on the insurance provider, your age (specifically if you are over or under 23), and whether you have children.
This fixed, out-of-pocket cost is the primary reason why earning slightly more than the Minijob limit can, counterintuitively, lead to a lower net income. When your income crosses the threshold, you are hit by two financial changes simultaneously:
- The new, mandatory 9.3% pension deduction from your salary.
- The existing, large fixed cost of your ~€140 monthly health insurance premium, which you must now cover from a salary that has just been reduced by the pension contribution.
This makes the transition from a Minijob to a Werkstudent position a critical financial planning moment.
From Gross to Net: A Realistic Salary Calculation
To illustrate how these rules affect your actual take-home pay, the following table presents several realistic scenarios for . It accounts for the different deduction rules for Minijobs and Werkstudenten and includes the mandatory out-of-pocket cost for student health insurance.
| Gross Monthly Income | Job Type | Pension Deduction (Student’s Share) | Health Insurance Cost (Student’s Out-of-Pocket) | Estimated Monthly Take-Home Pay |
|---|---|---|---|---|
| €550 | Minijob (Pension Opt-out) | €0 | ~€140 | €410 |
| €550 | Minijob (Paying Pension) | ~€20 (3.6%) | ~€140 | €390 |
| €600 | Werkstudent | ~€56 (9.3%) | ~€140 | €404 |
| €900 | Werkstudent | ~€84 (9.3%) | ~€140 | €676 |
| €1,200 | Werkstudent | ~€112 (9.3%) | ~€140 | €948 |
| Note: Health insurance costs are an approximation and can vary slightly. Take-home pay does not account for income tax, which is discussed in the next section and is generally refundable. | ||||
As the table clearly shows, a student earning €600 gross as a Werkstudent may end up with a lower net amount available for living expenses than a student earning €550 in a Minijob who opts out of pension contributions. This “Werkstudent dip” means that if you are considering a job that pays only slightly more than the limit, you should calculate carefully. To make the jump to a Werkstudent position financially worthwhile, it is advisable to seek a role with a salary significantly above the threshold (e.g., €700 or more).
Taxes for Students: The Good News About Getting Your Money Back
The final piece of the puzzle is income tax (Lohnsteuer). The good news is that for most students, this is not a final cost but a temporary deduction that can be fully reclaimed.
First, income tax is only relevant for Werkstudenten. Minijobs are tax-free for the employee, so no income tax is ever deducted from a Minijob salary.
For Werkstudenten, the key figure to know is the basic tax-free allowance (Grundfreibetrag). For the year , this allowance is . Any income you earn up to this annual amount is, in effect, tax-free.
Despite this, your employer’s payroll system will likely deduct income tax from your monthly salary. This happens because the software calculates your tax based on the assumption that you will earn that monthly salary for all 12 months of the year, which often projects an annual income above the tax-free limit.
This is where the tax return (Steuererklärung) becomes your most powerful financial tool. By filing a tax return with the tax office (Finanzamt) after the calendar year has ended, you declare your actual total annual income. The tax office then recalculates your true tax liability based on this real figure. Since the actual income of most students is below or only slightly above the threshold, the final tax liability is typically zero or very small. The tax office will then refund the difference between the tax that was deducted monthly and the final calculated amount.
Therefore, you should view income tax not as a permanent loss, but as a temporary, interest-free loan to the state. Filing a tax return is not just an administrative task; it is the mechanism for getting your money back. It is almost always worth the effort.
Conclusion: Your Checklist for Financial Success
Working while studying in Germany is an excellent opportunity, and with the right knowledge, you can manage your finances effectively. To ensure you stay on the right side of the regulations and maximize your earnings, keep this checklist in mind.
- Know Your Visa Limit: Always track your 140 full work days. This is your most important rule.
- Identify Your Path: Determine if your income is under (Minijob) or over (Werkstudent) and understand the specific rules for your path.
- Budget for Health Insurance: Set aside approximately €140 every month for your mandatory health insurance. This is your biggest fixed cost.
- Understand Your Payslip: Do not be surprised by the 9.3% pension deduction as a Werkstudent. It is a mandatory contribution.
- File Your Tax Return: Plan to file a Steuererklärung after the year ends. It is the key to getting your withheld income tax back.
- Demand the Minimum Wage: Ensure your employer pays you at least per hour in . This is your legal right.
