Midi Job as a Side Job: What Rules Apply Alongside a Main Job?
More and more Germans work in secondary employment alongside their main job. While a mini job alongside a main job is tax and contribution-free, different rules apply to a midi job as a side job. This article explains the social insurance, tax, and employment law aspects.
Social Insurance Obligation for a Midi Job Side Job
A midi job alongside a main job subject to social insurance is fully subject to social insurance contributions. The sliding scale regulation of the transition zone does not apply here, since total income from all employments is used for the aggregation. The employee pays the full social insurance contribution on the midi job earnings.
Tax Class VI: The Unavoidable Consequence
For tax purposes, the midi job as a second job is automatically classified as tax class VI. This means: no basic tax-free allowance, no employee expense allowance, no social insurance deduction allowance. Every euro is taxed from the first euro. The income tax burden typically amounts to 25-40% of gross earnings. Important: through the annual tax return, the actual tax liability is determined — and frequently part of the excess tax is refunded.
Comparison: Midi Job vs. Mini Job as Side Job
For a side job up to EUR 538: the mini job is clearly preferable. It is tax and contribution-free and imposes no burden on the employee. For a side job above EUR 538: there is no choice — from EUR 538.01, the side job is automatically subject to social insurance and taxed at class VI. The same rules apply as for a second regular employment.
Calculation Example: EUR 1,000 Midi Job Side Job
Assumption: main job EUR 3,500 gross (tax class I), midi job side job EUR 1,000 gross: social contributions (full employee share) approximately EUR 205, income tax (tax class VI) approximately EUR 180-220, midi job net approximately EUR 575-615. Of EUR 1,000 gross, only about 58-62% remains net. For comparison: at the same amount without a main job (tax class I), significantly more would remain thanks to the transition zone and basic allowance.
Employment Law Framework
Side activities must generally be reported to the main employer. Many employment contracts contain an approval requirement or at least a notification obligation. The employer may only prohibit side activities if legitimate interests are affected: competitive activity, violations of the Working Hours Act (maximum 48 hours per week on average), or demonstrable impairment of work performance in the main job.
Working Hours Act Compliance
Total working hours from all employments may not exceed 48 hours per week on average. Exceptionally, up to 60 hours are possible if an average of 48 hours is maintained within 24 weeks. At least 11 hours of rest must lie between two working days.
Tax Optimization: The Annual Tax Return
For employees with a midi job side job, the tax return is practically mandatory — and almost always financially rewarding. Reason: income tax at class VI is calculated on a flat-rate basis and is usually too high. Through joint assessment in the tax return, the actual tax liability is determined. Typical refunds range from EUR 500 to EUR 2,000 per year.
Tax Return Tips
All job-related expenses from the side job can be claimed as income-related expenses: travel costs to the workplace, work clothing, work equipment. The employee expense allowance (EUR 1,230) is granted only once per person, not per job. If actual expenses from both jobs combined exceed EUR 1,230, itemized claims are worthwhile.
Alternative Structures for Side Income
Instead of a midi job side job, the following alternatives may be more attractive: a mini job up to EUR 538 (tax and contribution-free alongside the main job), freelance side activity (no social contributions, only income tax on profit), or commercial side activity (trade tax only above EUR 24,500 profit). Our side income tax calculator compares all options for your individual situation.
Summary: What You Need to Know
A midi job alongside a main job is fully subject to social insurance and taxed at class VI. The net burden is significantly higher than for a standalone midi job. The tax return typically brings a substantial refund. A mini job up to EUR 538 is almost always the better choice as a side job. For higher side income, self-employed activities may be more tax-efficient.