Holiday jobs: Working between the semesters remains tax-free

Mini job, midi job, working studies or a holiday job? Many students work part-time to finance their studies. But if you don’t know the rules of taxes, social security contributions and insurance, you may have to pay more. We reveal how you can work during the semester break without having to pay taxes.

Earn money during the semester break

A summer job is ideal for many students as it offers the opportunity to work for several weeks at a time and to concentrate on lectures during the semester. However, if students want to top up their account balance between semesters, there are a few things to keep in mind so that you don’t have to pay extra afterwards. In order for the holiday job to remain tax-free, you may not work more than 70 working days or three months at a time. It is also important to stay below the annual basic allowance of currently 10,908 euros, otherwise social security contributions and taxes will apply. However, students who work several jobs for different employers at the same time during the semester break are taxed normally.

Other taxes for holiday jobbers

Since a temporary job during the holidays is short-term employment, neither the student nor the employer has to pay social security contributions, since this type of employment is generally exempt from social security. The same applies to health and long-term care insurance. In the case of temporary holiday work up to the age of 25, family insurance usually applies and it is not necessary to insure yourself as a student. But not every holiday jobber is automatically a student. However, other rules apply to all other short-term workers and so most vacation workers are better off being taxed individually. Depending on the amount of the salary and depending on the tax class, the employer must withhold wage tax and pay it to the tax office. The tax office refunds the payroll tax paid in full if the holiday jobber submits a tax return in the following year.

Editorial office finanzen.net

Image sources: Gunnar Pippel / Shutterstock.com

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