Energy Allowance for Mini-Jobbers in Germany

Due to the significant increases in energy prices in the autumn and winter of 2022, the German government is offering residents a one-time energy cost allowance of up to 300 euros. The subsidy will be paid to all employees, pensioners, retirees, and students. However, there is much uncertainty regarding the status of the employee – does this only concern permanent employees or also so-called mini-jobbers?

### Do Mini-jobbers Receive the Energy Cost Allowance?

The increases in energy prices and the significant rise in inflation have led the government to introduce a relief package for residents. One of the provisions was the energy cost allowance – a one-time allowance of 300 euros. This is intended for all persons engaged in taxable employment in tax classes I to V, including mini-jobbers.

Who then receives the energy cost allowance? What matters most is the form of employment – the amount of income does not play a role.

### Energy Cost Allowance and Mini-job – Does a Small Employment Entitle to the Energy Cost Allowance?

Let’s begin with a brief reminder of what a mini-job actually is. A “small employment” is when an employed person earns no more than 538 euros per month, which amounts to a maximum of 6456 euros annually.

Currently, due to the minimum wage in Germany of 12.41 euros gross, a person in a mini-job can work a maximum of 45 hours per month. If the hourly wage is higher, the number of hours must be reduced accordingly. Although a mini-jobber is subject to taxation, the salary itself is not taxable. Furthermore, this form of employment is not subject to social security.

Learn more about mini-jobs in the article – Mini-Jobs in Germany – Do They Have to Be Declared in the Tax Return?

### Energy Cost Allowance 300 Euros and Mini-job – How Is It Paid?

The energy cost allowance for mini-jobbers is paid directly by the employer or can be received as part of the annual settlement. Everything depends on the current employment status – if one was in employment on September 1, 2022, the one-time benefit should be paid by the employer.

Anyone who exercises a mini-job in addition to their main employment receives the energy cost allowance with the payment from the main employer.

All employees who were not employed on September 1, 2022, but worked in 2022, can apply for the energy cost allowance of 300 euros in their 2023 tax return.

An exception is “micro” employers – those who do not remit payroll tax for their employees to the tax office – this mainly concerns work in private households. In this case, the flat-rate energy cost allowance is not paid to the mini-jobber – here too, the allowance must be applied for in the personal tax return for 2022.

### Energy Cost Allowance – Does the Mini-jobber Receive the Full Allowance?

The energy cost allowance amounts to 300 euros for everyone, but since it is taxable, not everyone receives the full amount.

If the income does not exceed the tax-free allowance, which for the year 2024 is 11,604 euros annually (23,208 euros for couples) – no tax is paid on the energy cost allowance. In the form of employment of a mini-job, one cannot earn more than the tax-free allowance, so the energy cost allowance for mini-jobbers is tax-free, meaning they receive the full amount of 300 euros.

However, those who earn more must pay part of the 300 euros allowance as income tax – depending on the income, the deductions can range between 0 and 142 euros.

### Mini-jobbers and Energy Cost Allowance – Is It Taxable?

The flat-rate energy cost allowance is subject to taxation – this affects all groups of people whose incomes are individually characterized according to payroll tax. Mini-jobbers do not have to pay tax on the energy cost allowance of 300 euros if their incomes are taxed at a flat rate and do not exceed the tax-free allowance.

The energy cost allowance for mini-jobbers is also not considered wages in terms of social security – this means that no social security contributions are paid on this benefit.

### Is an Application for the Energy Cost Allowance for Mini-jobs Necessary?

Whether employed full-time, in a mini-job, or retired, no application needs to be submitted – the entire process of reviewing and paying the entitled funds is automatic. If the energy cost allowance has not yet been received, it should be received with the tax refund from Germany in 2024. This requires the submission of a tax return to the competent tax office. Use the tax application Taxando and receive your entitled money quickly and conveniently.