Student work agreement

What it means

The student work agreement is for a secondary school pupil or a full-time university student under 26. Working time averages at most 20 hours a week.

Its main advantage is the contribution exemption: up to a set monthly fee no pension insurance is due. Health insurance is not paid from it either, since the state covers students.

It differs from a work activity agreement not only in its higher hour limit but above all in that only a student can sign it. What counts is student status in the period concerned, not age as such: someone who has finished studying or moved to part-time study no longer qualifies.

How it works in practice

The student claims the exemption in writing and for only one agreement per month. The company still registers them with the Social Insurance Agency and keeps attendance records.

The agreement suits seasonal help and one-off work. Once it becomes a permanent position with a fixed schedule, an inspection will treat it as disguised employment with all the back payments.

In the summer season in hospitality or at festivals we process agreements for dozens of students at once. For each we collect proof of study and the written exemption claim, keep a payroll record and make sure registration and deregistration with the Social Insurance Agency happen on time.

What to watch out for

Exceeding the fee limit means paying contributions for that month, and the proof of study must stay current: without it the basis for the exemption falls away and contributions are calculated from the start.

The contribution exemption does not cover tax: an advance or a withholding tax is deducted from the fee, depending on whether the student signed the tax declaration. A student unaware of this is surprised by the lower payout, and without filing a return any tax overpaid stays with the state.