As a freelancer, you enjoy more freedom than employees who are permanently employed by a company. This has many advantages, but can also have some disadvantages, including in terms of wage levels, since as a freelancer you are not bound to the collective agreement. As a freelancer, however, you are also not tied to a location and can or should be able to do the agreed work from anywhere, e.g. from home (“home office”) or even in your favorite café. The English word “freelancer” means “free employee” in German, and in Austria it also means “free service recipient”.
The agreed work (content, area of operation, salary, location) is recorded and regulated in an employment contract.
What are classic freelance industries?
A freelancer is not the same as a freelancer; the term freelancer refers to the employment relationship and says nothing about the profession practiced.
As a freelancer, you do not need any authorization to do the job, such as a classic painter or architect.
Most freelance job offers and, accordingly, freelance job platforms are found in creative areas such as graphics, design, social media marketing or programming/developers. However, the trend towards freelance workers is increasing. Many service jobs (such as telephone customer service and also in the catering industry) do not rely on employment and are now regulated by freelance contracts.
Labor law as a freelancer
But the freedoms mentioned also come at a price. Self-employed workers or freelancers only have limited protection under employment law. This can also be a positive thing - you can get out of a job more quickly if you don't like it (and your employment contract allows it).
There is also no entitlement to a minimum wage as agreed in the industry's standard collective agreement. There is also no automatic entitlement to vacation.
Insurance
earnings below the monthly marginal income limit
Freelancers who are employed below the monthly marginal employment limit are only insured against accidents, but not against health insurance. Before starting work, the employer must register them with the accident insurance company. Marginally employed freelancers can also take out voluntary health and pension insurance.
Info: The marginal income limit for 2023 is EUR 520.
Earnings above the monthly marginal income limit
Freelancers whose monthly salary exceeds the marginal income threshold must be registered as independent contractors with the relevant health insurance provider and are then also insured against accidents, health and pensions. They are also subject to compulsory unemployment insurance and insolvency wage protection.
Tax liability
Freelancers are liable to pay income tax, but not wage tax, as they are treated as self-employed persons.
For the year 2023 in Germany, freelancers are liable to pay income tax but are not subject to wage tax because they are treated as self-employed persons. They are responsible for paying their own income tax. The basic allowance up to which no income tax has to be paid is 10,908 euros for individuals. For married couples or civil partnerships that are assessed jointly, the amount is 21,816 euros.
Job platforms for freelancers
There are various job platforms that operate internationally and are designed to help freelancers, especially in the creative sector, to find jobs. Unfortunately, these industries are often saturated, which is why the price pressure is enormous and the wage level is relatively poor. This can also reduce the quality of the work submitted.
Fiverr
Fiverr is one of the best-known freelance platforms with a European background. Fiverr was founded in Tel Aviv in 2010 and now operates worldwide. Freelancers create a profile and show their portfolio. Nomen est omen: The price here starts at a (very cheap) fiver.
Upwork
Upwork is a US-American platform for freelancers, especially in the areas of technology and design. Upwork claims to be the largest network in the world with 12 million registered freelancers who offer their skills in profiles and 5 million buyers.
Senior Connect
We offer a wide range of job opportunities for experienced professionals in different industries and employment relationships, from full-time positions to part-time or marginal employment during retirement. Unlike other platforms, we are not limited to freelance jobs; we offer a variety of employment opportunities, including fee-based project work and permanent positions.
Our platform promotes the exchange of experiences and appreciation between generations. Registration and use of our platform is free for job-seeking senior talents aged 60 and over. Companies, on the other hand, can post job offers for a fee and search for qualified candidates in the Senior Connect Talent Pool.
Senior Connect is committed to opening up the world of work to experienced professionals and highlighting their skills and experience. We believe that age should not be a barrier to career progression and are committed to creating opportunities for experienced workers.
Daniel, a content creator with a great sense of language, enjoys skateboarding, going to the cinema, and photography, and has a passion for dark chocolate.
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