Millions of workers in Germany are earning less than minimum wage
Of six million minimum wage workers in Germany, roughly two million are not taking home as much pay as they are legally entitled to, according to calculations by the Trade Union Confederation.
Around two million workers in Germany are not earning the full statutory minimum wage each year, costing employers, social security funds and taxpayers up to €64 billion over the past decade, according to the German Trade Union Confederation (DGB). Germany's minimum wage, set at €13.90 per hour, was introduced in 2015 and is meant to apply to almost all workers.
However, a large DGB survey suggests that many workers, particularly immigrants and new arrivals, are earning less. Employers are estimated to have withheld an average of €1.70 to €2.40 per hour from affected employees since the minimum wage's introduction, amounting to a total of €64 billion from 2015 to 2024. This figure does not account for the additional €35 billion in take-home pay that workers would have earned and the €22 billion owed to social security funds and income tax.
The DGB attributes part of this wage gap to "wage theft", illegal practices by employers such as failing to record working hours accurately. The Federal Customs Administration, responsible for enforcing minimum wage laws, is reportedly understaffed, with only around 2,500 positions filled out of the approved 2,500. This leads to an average of one inspection every 140 years per company.
The DGB urges more rigorous enforcement and harsher penalties for employers violating minimum wage laws.
Written by urgent.news from The Local Germany's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
