New feature beginning with July 1st, 2019: “Übergangsbereich” = Transition Zone
Starting with July 1st, 2019, the “Gleitzone” (low-wage transition zone) becomes the new “Übergangsbereich” and this means plenty of changes for the wage accounting.
Employees in the “Gleitzone” (part-time employees earning between 450.01 € and 850.00 € per month) now become employees in the new “Übergangsbereich” (part-time employees earning between 450.01 € and 1,300.00 € per month). These employees are also called “Midi-Jobbers”.
But attention: Apprentices and short-time workers are not considered as workers in the “Übergangsbereich”, even if their wages are within the corresponding limits.
Important for the wage accounting:
The employer’s contributions to the social security are calculated from the full wages.
The employee’s contributions to the social security are calculated from the reduces wages. The reduced wage is calculated with a special formula. Important basis for this formula is factor F, which is published every year.
If you have not agreed upon a fixed wage with your employee, you must estimate anticipatory and precisely the yearly wage of the employee. One-time payments (Christmas bonuses, holiday pay, but no overtime allowance or premium payments) must be added and then the sum divided by 12. If the monthly wage thus calculated is within the range from 450.01 € to 1,300.00 €, your employee is in the transition zone “Übergangsbereich”. In case of a rise within the year, the wage must again be calculated for the future.
The reduced wage for the calculation of the social security contribution is calculated as follows:
1.1288588 x wage – 167.51647 = reduced wage
The thus calculated reduced wage is the assessment basis for the calculation of the full social security contribution.
The monthly contribution to the social security is calculated as follows:
1. Calculation of the full contribution (based on the reduced wage)
2. Calculation of the employer’s contribution (based on the full wage)
3. Calculation of the employee’s contribution (full contribution - employer’s contribution)
Advantage for the employee: he pays the reduced social security contribution but is entitled to pension based on the full contribution.
Advantage for the employer: he saves additionally, as beginning with July 1st, 2019 the employer’s allocation U1 (for disability), U2 (for pregnancy and maternity protection) and U3 (for insolvency) is calculated for all employees in the transition zone based on the reduced wage.