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Net pay calculation for short-term assignments · German Tax Law 2026
All figures without guarantee · German tax law 2026 · For binding advice please consult a tax advisor
Short-term employment (kurzfristige Beschäftigung) is a fixed-term employment contract in Germany, originally created for seasonal work. It differs fundamentally from a mini-job: the decisive factor is not the monthly earnings but the duration of the assignment.
The key advantage: no social security contributions apply — neither for the employee nor the employer. Income tax is however withheld in full via the electronic wage tax deduction system (ELStAM).
For daily billing, the daily wage is extrapolated to 360 days in accordance with § 39b EStG to arrive at a notional annual income. The resulting tax rate typically falls between 10% and 30% of gross pay — considerably higher than what actually applies at year end.
This sounds like a lot, but it is not a permanent loss: through the annual income tax return, the difference to the actual annual tax rate is usually refunded in full.
Since the employer must assume a greatly inflated annual income when billing daily, too much income tax is usually withheld upfront. The actual tax rate is however based on real annual earnings — which for short-term assignments are typically far lower.
Via the income tax return, the employee can reclaim the difference. If total annual income falls below the basic allowance of €12,348, the entire withheld income tax will be refunded. Filing a tax return is therefore almost always worthwhile.
Short-term employment is intended for seasonal side work — not as a primary source of income. An active primary occupation or equivalent status is a prerequisite.
Per calendar year, a person may work a maximum of 70 working days across all short-term employment contracts — even if multiple employers are involved. Work-student jobs and voluntary internships count toward this limit. Mini-jobs do not.
Regardless of the number of days: a single short-term employment contract may not last longer than 3 months on a 5-day working week. If this limit is exceeded, the contract automatically becomes subject to social security contributions.
| Short-term | Mini-job | Regular | |
|---|---|---|---|
| Income limit | None | €603/month | None |
| Time limit | 70 days/year | None | None |
| Social security (employee) | None | 3.6% pension | approx. 20% |
| Social security (employer) | 1.47% (levies) | approx. 29.4% | approx. 22% |
| Income tax | Per ELStAM | 2% flat (employer) | Per ELStAM |
Employer levies U1/U2/U3 for short-term employment: approx. 1.47% of gross pay (U1: 1.1% · U2: 0.22% · U3: 0.15%)
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