Additional income during the rest phase of partial retirement.
February 15, 2012 | 30,00 EUR | answered by Andreas Schupp
Dear Sir or Madam,
At the end of February, the quiet phase of my partial retirement (ATZ according to the block model) begins. I would like to take on a side job as a lecturer at a university during this time. I am aware that during the quiet phase of my partial retirement, I am allowed to earn a maximum of 400 euros per month. However, the university only pays the fee once per semester (half year), so the salary in the month of payment is significantly over 400 euros, but the total for the year is below 5600 euros. Do I need to expect a reduction of my regular salary during the quiet phase of my partial retirement because of this?
My employer has informed me about the following regarding this matter:
"The 400 euro threshold for a side job is indeed per calendar month. You should consider making a separate agreement with the university to spread the payment of 1,200 euros over three months. This way, you will stay within the threshold and be on the safe side regarding social insurance."
The university has stated that they can only pay the honorarium once for the entire semester.
Best regards
Dear inquirer,
Thank you for your inquiry, which I am happy to answer in the context of an initial consultation, taking into account your input and the rules of this platform.
Please note that my explanations are based on the situation you presented, and that adding, omitting, or changing life circumstances or the ambiguity of the information provided can affect the correct tax result.
If the salary is calculated monthly (monthly salary statement maximum 400.00 euros), you are still within the limits of a marginal employment. However, if the calculation is done for one month, you may have to expect deductions for income tax and social security contributions (health, long-term care, and unemployment insurance, etc.). Re-calculating months in one month, for example, wages for January + February in March, is permissible.
Tip: In addition to working as a temporary employee, if certain conditions are met, you may also qualify for a tax exemption according to § 3 No. 26 EStG "so-called exercise instructor allowance" up to 2,100 euros per year (175 euros per month).
A reduction in pension benefits should not occur in any case, as you have already "pre-worked" the retirement phase that is now beginning. Based on the situation presented, I do not see any reason for a reduction.
I hope that my explanations have been helpful to you. If there are still uncertainties, please use the option to ask further questions.
Best regards,
Andreas Schupp
TAX ADVISOR
