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Minijob debate and wage demands
7th of October 2026 Article by Katja Scholz
Germany’s contract cleaning sector is facing a challenge autumn, writes Katja Scholz for ECJ.
The building cleaning industry is facing a difficult financial situation: on the one hand, wage and social security costs are rising, while on the other, many businesses are struggling with weak demand. Two current debates - around Minijobs and wage increases - highlight the challenges facing the sector.
The German government’s pension commission is recommending marginal employment contracts in future be included in the statutory pension insurance system as a general rule, and their special status under tax and social security law be abolished. An exception would apply to school pupils. This has once again put the future of the Minijob on the political agenda.
The issue is particularly relevant to the building cleaning sector: almost 30 per cent of employees work on a Minijob basis, while personnel costs account for an average of around 85 per cent of total costs.
The Federal Association of the German Building Cleaning Trade (BIV) is therefore warning of additional burdens on businesses. Its managing director Wolfgang Molitor criticised the government’s approach: “Now this way, now that way - sometimes the government wants to make Minijobs more expensive for companies, sometimes it wants to abolish them. Meanwhile, the details remain unclear. So what now? With this erratic approach, the government is creating uncertainty such among companies and employees.”
Only recently, the government proposed introducing contributions to health and long-term care insurance for the first time for Minijobs. Now the possibility of abolishing their special status altogether is being considered.
From the BIV’s perspective, two points are crucial. Minijobs are already the most expensive form of employment for companies, it argues. There should therefore be no further one-sided burden on employers. At the same time, any reform must ensure low-income employees are not left worse off through higher deductions, as this could make undeclared work or withdrawing from the labour market more attractive.
Collective bargaining round
The current collective bargaining round this autumn is also putting money centre stage. The IG BAU trade union is demanding a pay increase of more than 13 per cent over a 12-month period for pay grade one, which covers the largest number of employees. The BIV has firmly rejected the demand.
There are nine wage groups in the building cleaning sector. Two of these are covered by generally binding industry-wide minimum wages. The current rate for the entry-level group of unskilled workers is €15 per hour, while skilled workers in pay grade six earn €18.40.
Christian Kloevekorn, chairman of the BIV’s collective bargaining commission, points to the sector’s economic situation. Following years of stagnation and recession, he says, the German economy remains weak. At the same time, rising social security contributions and other levies are creating additional pressure on businesses.
The latest BIV economic survey supports this assessment: only 16 per cent of companies have a positive outlook for the current financial year, while 34 per cent expect business to deteriorate. Industry, offices and administration in particular are cutting back on orders and services. At the same time, 29 per cent of companies have recently had to reduce their workforce for.
For the pay negotiations, this means demands for higher pay are colliding with rising costs and diminishing room for manoeuvre among companies. Or, as Kloevekorn puts it: “The worse the situation, the louder the demands.”
The central question over the coming months is therefore likely to be how higher incomes can be reconciled with the economic viability of businesses.
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