Cabinet approves draft of the Income Tax Reform Act 2027

Berlin, 2 September 2026 – The German Hotel and Catering Association (DEHOGA Bundesverband) has reacted with strong criticism to Wednesday’s cabinet decision on income tax reform: “Anyone who supports mini-jobs as a matter of policy must also ensure they remain affordable,” explains DEHOGA President Guido Zöllick.

“Raising the flat-rate tax on mini-jobs from two to five per cent sends completely the wrong signal. Mini-jobs must remain affordable. Anyone who keeps driving up their costs is directly undermining the sector’s ability to employ staff and depriving both businesses and employees of the necessary flexibility. 

This would have serious consequences for the hospitality sector. One in two employees in our sector works on a mini-job basis. These employment arrangements are indispensable, particularly in the evenings, at weekends, during events and in peak seasons. Rising staff costs are by far the greatest challenge in economically difficult times. The Bundestag must therefore take urgent action to rectify the situation and prevent further burdens.

Just before the summer recess, the employer’s contribution to health insurance was raised from 13 to 17.5 per cent. Further burdens in the form of an employer’s contribution to long-term care insurance are also on the cards, as are changes to the special pension status of mini-jobs.

Germany needs a tax policy that genuinely reduces the burden on labour and entrepreneurship. Many hospitality businesses are small and medium-sized sole traders and pay tax on their profits via income tax. Additional burdens deprive them of precisely the funds they need for investment, jobs and securing their future.”