Health insurance with a 450 euro minijob

92 posts in this topic

Hi,

 

I read the following when searching 'health insurance' on TT, regarding mini jobs in particular:

 

''As mentioned above, any employee with a gross salary under the threshold will be compulsorily insured in public health insurance. This, by the by, is also the backdoor for freelancers and self-employed persons to get back into the public insurance system if they find that the private insurance, be it German or international, is not the best option for them: just find someone to give you a €400-job for at least one year and you can keep the public insurance afterwards when freelancing again (but only if you are under the age of 57 years, if you are older this won’t work anymore).''

 

I do a number of freelance jobs, and one employer in particular pays me between €500 and €600 a month, consistently. Because I am currently without health insurance, we have discussed registering me under this 'mini-job' in order to insure me.

 

My first question: Was this mini-job option created specifically for the amount of exactly €400 per month? Or can it be extended to say €600 per month?

 

Secondly: What percentage of this would i pay towards health insurance? Is the cost split 50/50 with my employer?

 

I am pretty confused as to how the mini job works, so if anyone can help at all I would really appreciate it.

 

Thanks

Jason

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Why? I didn't learn anything from your post.

 

Why can I not create a €400 mini job with the client and all other excess and income is paid to me in cash?

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So you're asking if you can go on record with one mini-job and work in the black for all the rest of your earnings. It's against the law. I think that's what he's saying.

 

EDIT: To clarify... if you want to work out a little something with that guy if he were your only client, that's one thing (though still illegal), but if you are going to stop reporting all your other freelance earnings... Bad idea, especially depending on your visa.

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Thanks for your reply.

 

I am here on EU passport just to clarify.

 

I don't even know to what extent the mini job health insurance would cover me. Is it just hospital cover?

 

For eg I know a bartender who worked here, he was registered under a mini-job which paid him €400 and any additional hours he worked was paid in cash.

 

I'm not even sure what the benefit is of using the mini job insurance, as opposed to just claiming all my earnings and paying tax and health insurance on everything. It was recommended to me as an option, perhaps to save some money or be able to continue using public health insurance once my employment with this particular client was over.

 

I'm not trying to be dishonest, I am just having major difficulty working out which route to take.

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Trust me, I hear you. The maze I've been navigating has been winding and taxing (pun kind of intended). I'd recommend contacting Starshollow (TT member; just send him a PM). He'll provide you with the best advice as he's a pro in the insurance business, and a good guy as well.

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I'm not trying to be dishonest, I am just having major difficulty working out which route to take.

That's because you are probably allowing relatively small details to drive the big picture of your life (how you work). It's the wrong way round. And what's the marginal cost here, a grand or so on healthcare provison? Get on with earning your freelance earnings and building a sustainable worklife and you probably won't have those "difficulties".

 

The best solution is to do the most straightforward, transparent thing. Once you get sucked in to convoluted solutions, that are different to what you'd have otherwise done, that involve additional risks and efforts and possibly even not quite the "right thing" (in terms of employment, law, tax etc) stuff, that's when life gets more difficult, in terms of time, effort and stress.

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I agree with your philosophy, perhaps my diction gave you the wrong idea. I am however still looking for more practical advice.

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What sort of practical advice do you need?

It's very simple. Earn up to €400/month on a minijob basis and your health insurance is covered (in the additional payments your minijob employer pays into the system - you get the (up to) €400 in your pocket). Earn over €400 and you need to pay around 15% of your gross income to the health insurance, for which your employer will contribute half.

If you take a €400 job and are paid additional money in cash then you are working illegally and your employer is paying you illegally. If either of you are caught out (and it's remarkably easy to be caught out), then both of you are in deep shit and liable to substantial fines and back payments for unpaid tax and insurance.

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HI Jason, sorry I did not read that thread sooner... busy day, yesterday.

What you are aiming for - and that would make sense looking at it form several angles - is a MIDI-job rather than a mini job. Mini-job is a fixed employment with 400 EUR/month or less, MIDI jobs start at 401 EUR per month.

Positive: with a MIDI job you'll be getting public health insurance relatively cheap, you'll also pay into public pension and even unemployment insurance. Your own share of costs for that start pretty low (4-5%) and are sliding upwards with increase of income (fixed or variable).

The DEUTSCHE RENTENVERSICHERUNG has a good tool to see how your share of costs move with difference in income, check here for more: http://www.deutsche-rentenversicherung.de/...html__nnn=true. Download the tool and play with the numbers (might need a German native speaker to help you with that a little if your German is not up to scratch for that).

Now, public health insurance is based on your income, i.e. total income. Therefore you should anticipate that your health insurance costs will increase with ore reported income. But the safety of this scenario is definitly something to aim for. As long as you keep all your income above the table, that is.

 

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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With the 400 euro mini jobs, it's not like the insurance is free - in this case, your employer is paying for it. Although they will only pay you 400 euros, it costs them a further 100 to 150 euros a month, which covers your taxes and all your insurances.

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Thanks for the replies Starshollow and Hutcho, it makes sense to me now!

 

I will be sorting this out next week and will post if I have any other questions.

 

Thanks again :)

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I'm hoping someone can help me with another minijob/health insurance question. I do freelance work for a company in the U.S., and while over the course of a year I will average less than 400 euros of income a month, some months I might earn 600 and other months only 200 (or nothing at all). I talked to someone at TKK about this (I'm insured through my husband's company) and he told me that if I go over 400 euros any month, then I'm not eligible to be insured through my husband. This sounds pretty extreme to me and unfair to freelancers who work on long-term projects. Could it really be true? I'm hoping there was a communication problem...

 

And, if it is true, how would they monitor this? There's the actual work I do in a month, the date my supervisor submits a payment request to the accounting department, and the date the money is deposited into my account (the entire process can take weeks). Getting it all divided into 400 euro/month payments is pretty much impossible and will end up with me making far less than I can in order to avoid going over the monthly limit.

 

Thanks for your help.

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This sounds pretty extreme to me and unfair to freelancers who work on long-term projects. Could it really be true? I'm hoping there was a communication problem...

 

(1) It suppose might be "unfair" if you are a married woman used to living off someone else and feeling entitled to taxpayer largesse for your lifestyle choice. Unmarried freelancers consider it totally normal to pay our way, of course. Seems to be "fair" for us to have to do it. So why not you, really?

 

(2) You get welfare payments for simply being married. This is one of the possible disbenefits in return, according to your chosen lifestyle. Use that payment to pay your healthcare, perhaps?

 

How will they "catch up with you". Through your husband's routine TKK declaration process I would guess. Also possibly through your tax declaration (but don't know how much they "join up" that information).

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Blimey, Swimmer! " A married woman living off someone else "! That´s a tough statement! Is that pre- or post-Feminist?!!!

 

madtowner: normally the amount is 375 euros plus per month and you´re on your own with health insurance. God knows how they´d check it from the States---

I am a professional independent insurance broker and authorised advertiser. Contact me.
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Strictly speaking the rules are "no regular income over 365€ per month", otherwise you must have your own health insurance. In practice they will average out the year, taking your income from your annual tax statement (Steuerbescheid). Your husband would normally have to declare your income on an annual statement to the TKK on a form they will send him. If you are slow in submitting your tax forms this can bite you in the bum, as you may have to back-pay insurance for previous years if they subsequently find you exceeded these limits in earlier years.

 

Bear in mind the 365€ is your income - that is your profit - and not your turnover (the sum of your invoices or payments into your account). You deduct business expenses (office, travel, administration, etc.) from your turnover to reach your income, which is used as the basis for the calculation, but this should already have been done on your tax declaration anyway. I'm sure you have at least one "business" trip back home each year which will go a long way to reduce your effective declarable income.

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