Summer job - earn money, but please without trouble with the tax office, social security, and family allowance

Summer jobs, in particular, are in high demand during the summer months – which is why it's all the more important to start looking for a suitable position in good time. After all, both an attractive supplementary income and valuable practical experience should be secured. However, it is equally important to familiarise yourself with the tax and social security regulations, as well as any potential impact on family benefits, in good time to avoid unpleasant surprises afterwards. The following explanations naturally apply not only to summer jobs but also to ongoing employment or paid internships as part of your training.

Tax consequences

The income tax treatment of summer jobs fundamentally depends on whether you are employed by the employer or work under a contract for work or a freelance service contract. If the employment relationship lasts only one month, for example (but always less than a full year), and social security contributions and income tax are withheld due to a correspondingly high remuneration, it is advisable to carry out an employee tax assessment in the following calendar year. The application for employee tax assessment can even be submitted up to 5 years retrospectively and regularly leads to a tax credit, as the income is spread over the whole year and income tax is recalculated. In some cases, an employee tax assessment may also be initiated without an application.

If employment is under a contract for work or a freelance service contract, income from self-employment is deemed to have been earned, and no wage tax will be withheld. From an annual income (in 2026) of €13,539, or €14,769 if taxable income is also included, an income tax return must be filed. VAT liability in connection with holiday jobs on a contract for work basis or as a freelance employee is theoretically conceivable, but in any case, only when gross receipts exceed €55,000 and have also exceeded this amount in the previous year. Until then, the exemption from VAT as a small business owner applies. The EU-wide threshold of €100,000 is also a theoretical consideration – turnover within the EU must not exceed the threshold of €100,000 in the current calendar year or the previous year to be eligible for the small business exemption. Up to €55,000 in turnover for the assessment period (and if no tax is payable for the assessment period), no annual VAT return needs to be filed (nor a monthly VAT return).

Family allowance

The earnings from a holiday job,.

In addition to monitoring income for the current year in order to anticipate whether the additional income limit might be exceeded (e.g. through a summer job), it is important to note that if the additional income limit is exceeded, a new application for child benefit must be submitted the following year. This is, of course, subject to the condition that taxable income in the new year remains below the additional income limit. The conditions for receiving family allowance or for exceeding the additional income limit do not change even if the family allowance is paid directly to the child. This can be applied for at the tax office with the consent of the eligible parent once the child reaches the age of majority, and will then result in the child tax credit being transferred to the specified account. Claims for repayment of family allowance are nevertheless still directed at the parents.

Consequences in social security

Most holiday interns – provided they are employed and are not working under a contract for services or a freelance contract – are treated as standard employees for the purposes of social security law. If the gross salary exceeds €551.10 per month (the marginal earnings threshold for 2026), compulsory insurance and the deduction of social security contributions apply.

Finally, from the employer’s perspective, care should be taken to ensure that summer interns are paid appropriately, as failure to do so may result in severe administrative penalties (the "Act to Combat Wage and Social Dumping" must be observed). It must be ensured that the basic wage payable under the collective agreement is not undercut, nor that the payment of interns results in the non-payment of remuneration required under labour law, which is due in accordance with the law, regulations or collective agreement (e.g. overtime or supplements in accordance with the law or collective agreement).

Image: © Adobe Stock - U. J. Alexander