Working Student (Werkstudent) Rules in Germany: 20-Hour Limit & Tax Privileges
Working as a Werkstudent (working student) is the single most popular way for university students in Germany to earn money, gain corporate experience, and build industry networks while completing their studies.
The German government provides special tax privileges for working students, exempting them from major social security contributions.
Here is a breakdown of the rules, working hour limits, salary expectations, and tax exemptions for Werkstudenten.
The 20-Hour Weekly Rule (20-Stunden-Regel)
To maintain legal status as a full-time student (and keep student health insurance rates), working students must follow strict working hour caps during lecture periods:
- Lecture Term Limit: Maximum 20 hours per week.
- Semester Breaks (Vorlesungsfreie Zeit): During official university holidays, working students are allowed to work full-time up to 40 hours per week.
- 70-Day / 26-Week Exception: Working more than 20 hours per week is permitted during night/weekend work, provided it occurs for a maximum of 26 weeks (182 days) per calendar year.
Tax Privileges & Social Security Exemptions
The biggest advantage of a Werkstudent contract compared to a regular employee contract is social security savings:
| Contribution Type | Regular Employee | Werkstudent |
|---|---|---|
| Health Insurance (Krankenversicherung) | Paid via payslip (~7.3%) | EXEMPT (Student pays flat student GKV rate) |
| Nursing Care (Pflegeversicherung) | Paid via payslip (~2.0%) | EXEMPT |
| Unemployment Insurance (Arbeitslosenversicherung) | Paid via payslip (1.3%) | EXEMPT |
| Pension Insurance (Rentenversicherung) | Paid via payslip (9.3%) | MANDATORY (9.3% employee share) |
Result: A Werkstudent keeps a significantly higher percentage of their gross earnings as net payout compared to a standard part-time employee earning the same hourly wage!
Income Tax & Tax Returns (Steuererklärung)
Working students are subject to regular income tax rules:
- Basic Tax-Free Allowance (Grundfreibetrag): If your annual income stays below €12,348 per year (approx. €1,029/month), your income tax liability is 0%.
- Tax Withholding: If your monthly income temporarily exceeds the tax threshold (e.g., during summer full-time work), your employer will withhold income tax under Tax Class 1.
- Tax Refund: You can easily claim back all withheld income taxes by filing a simple student income tax return (Steuererklärung) at the end of the year!
Werkstudent vs. Minijob
- Minijob (603-Euro-Job): Earnings up to €603 per month. Completely tax-free and exempt from all social security deductions. Ideal for low-hour campus roles.
- Werkstudent: Earnings exceeding €603/month up to 20 hours/week. Pays 9.3% pension contribution but allows significantly higher total earnings.
Are you applying for university admission or financing? Check out our guides on Free Public Universities in Germany and BAföG Financial Aid!