Germany’s pension reform plan faces resistance as the future of Minijobs sparks political and industry backlash.

German Chancellor Friedrich Merz and Labor Minister Bärbel Bas have endorsed the pension reform proposals from the Pension Commission, calling them a ‘masterpiece’ to be adopted in full. However, the plan’s harmony is at risk due to a contentious proposal to abolish the tax and social security exemptions for Minijobs, which currently allow workers to earn up to €603 per month without such deductions. This change would primarily affect students, retirees, and part-time workers, sparking protests from industries like tourism, hospitality, and agriculture.

Bavarian Premier Markus Söder has voiced strong opposition, warning that such reforms must be approached cautiously to avoid unintended consequences. His stance has drawn criticism from the Young Union, whose leader Johannes Winkel urged politicians to prioritize the nation’s long-overdue pension reform over political maneuvering. Meanwhile, CDU General Secretary Carsten Linnemann has supported making Minijob contributions to pensions mandatory, though his interpretation of the commission’s recommendations has sparked further debate.