Werkstudent status lets German companies hire qualified university students for work related to their field while saving significantly on social contributions. The state encourages combining study with practical work, provided clear time limits are respected.

Status criteria and the 20-hours-a-week rule

The key criterion for working student status is that studying must remain the student's main activity (ordentliches Studium). During the semester, a student may work a maximum of 20 hours a week. This limit may only be exceeded during official semester breaks (Semesterferien) or when working exclusively in the evenings or at weekends (the 26-week rule).

Savings on social contributions for the company and the student

The key benefit of the working student privilege (Werkstudentenprivileg) is that neither the employer nor the student pays contributions to statutory health insurance (Krankenversicherung), long-term care insurance (Pflegeversicherung) or unemployment insurance (Arbeitslosenversicherung). The only social contribution is pension insurance (Rentenversicherung: 18.6%, split equally between the company and the student).

Taxation and the student's tax class

The student's wages are subject to income tax based on the electronic wage tax data (ELStAM). If it is their first and only job, the student is placed in tax class 1 (Steuerklasse 1). If their income is below the basic tax-free allowance (Grundfreibetrag: €12,348 in 2026), the income tax withheld is refunded in full through the annual tax return.

Documents required when hiring

The employer must ask the student for a valid certificate of enrolment (Immatrikulationsbescheinigung) for the current semester, their tax ID (Steuer-ID), social security number and proof of membership of a health insurance fund. At the start of each new semester, the certificate of enrolment in the personnel file must be updated.

What to check

  • Ask for a current Immatrikulationsbescheinigung before signing the contract.
  • Check that working hours do not exceed 20 hours a week during the lecture period.
  • Calculate contributions to pension insurance only, without health, care or unemployment insurance.
  • Update proof of student status every six months at the start of each semester.

Example situation

An IT start-up hired a computer science student for 18 hours a week; compared with a regular employee, the company saved around 12% of the salary in health, long-term care and unemployment insurance contributions, and the student kept his student status.

Next step

Hiring a working student combines savings on social contributions with motivated staff, provided the 20-hour limit is strictly monitored.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.