Germany has a highly structured employment system, and the type of contract you sign affects working hours, taxes, social security, and student status. Many problems for international students and graduates arise not from the job itself, but from signing the wrong contract type.
This page explains the main types of work contracts, how they differ, and what to watch out for as a student or recent graduate.
Why Contract Type Matters More Than Job Title
Two people can do similar work but face very different legal and financial consequences depending on their contract:
• One stays insured as a student
• The other suddenly owes full social contributions
• One keeps residence permit compliance
• The other risks violations
Always evaluate the contract type first, not just salary or job description.
Full-Time Employment Contract (Vollzeit)
Typical working hours:
• 40 hours per week (sometimes 38–39 depending on industry)
Who this is for:
• Graduates
• Employees who have completed or paused studies
• Not suitable for enrolled full-time students
Key characteristics:
• Full social security contributions (health, pension, unemployment, care)
• Standard employee rights (paid leave, notice periods, sick pay)
• Monthly gross salary
Important for students:
Full-time contracts usually end student status and are not allowed during full-time studies without special permission.
Part-Time Employment Contract (Teilzeit)
Typical working hours:
• Less than full-time (e.g. 10–30 hours per week)
Who this is for:
• Students needing more income than a mini-job
• Employees balancing work and other commitments
Key characteristics:
• Regular employee status
• Taxes and social security usually apply
• Proportional benefits (paid leave, sick pay)
Student-specific rule (very important):
During the semester:
• Maximum 20 hours per week
Exceeding this may:
• End student health insurance
• Trigger full social contributions
• Cause residence permit issues for non-EU students
During semester breaks, higher hours may be allowed for limited periods.
Werkstudent Contract (Working Student)
The Werkstudent contract is a special category designed for students.
Who this is for:
• Enrolled students
• Jobs related to field of study (in practice, not always strictly enforced)
Key advantages:
• Reduced social security contributions
• You usually do not pay unemployment or health insurance through payroll
• You remain insured via student health insurance
Working time:
• Up to 20 hours per week during the semester
• More hours possible during breaks (within limits)
Career impact:
Werkstudent roles are highly valued and often serve as long-term trial phases for future full-time employment.
Mini-Job Contract (Marginal Employment)
Income limit:
• Up to €538 per month (limit adjusts with minimum wage)
Who this is for:
• Students needing flexible income
• Jobs unrelated to studies (retail, service, logistics)
Key characteristics:
• Very low or no tax for employees
• Employer pays lump-sum contributions
• No career progression by default
Important:
Mini-jobs still count toward working-hour limits for international students.
Fixed-Term vs Permanent Contracts
Fixed-Term (Befristeter Vertrag)
• Ends on a specific date
• Common for:
• Entry-level roles
• Project-based work
• Student contracts
Legal limits apply to how often contracts can be renewed.
Permanent (Unbefristeter Vertrag)
• No end date
• Strong job security
• Harder to terminate
• Often a requirement for long-term residence planning
How Contract Types Affect Students
Mini-Job
• Best for flexibility
• Lowest risk
• Limited income
Part-Time
• Higher income
• Higher complexity
• Risky if hours exceed limits
Werkstudent
• Best balance of income, legality, and career value
• Requires careful hour management
Full-Time
• Not suitable during full-time studies
• Intended for post-graduation phase
Common Mistakes to Avoid
Signing Without Checking Hour Clauses
Some contracts include:
• “Average working time” wording
• Flexible hours that can exceed 20 hours unintentionally
Always clarify this in writing.
⸻
Confusing Job Title with Contract Type
A role called “Working Student” is not legally a Werkstudent unless the contract explicitly says so.
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Ignoring Insurance Consequences
Health insurers review employment data automatically.
Problems are often discovered months later, retroactively.
Reality Check
Germany’s employment system rewards:
• Clear categorization
• Compliance with rules
• Long-term planning
Choosing the right contract type can be more important than choosing the right job.