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.
In Germany, approximately six million workers earn minimum wage, yet a survey by the German Trade Union Confederation (DGB) indicates that around two million of these employees are actually earning less than the legally mandated minimum. This wage disparity has cost employees, social security funds, and tax authorities up to €64 billion over the past decade.
The minimum wage in Germany, introduced in 2015, stands at €13.90 per hour. Although most jobs should meet or exceed this threshold, particularly vulnerable groups, such as immigrants and new arrivals, often find themselves in low-wage positions with limited awareness of their rights. The DGB's analysis, based on a survey of 30,000 individuals across 20,000 households, reveals that, on average, affected workers receive €1.70 to €2.40 less per hour than they should.
This amounts to a total of €64 billion in unpaid wages from 2015 to 2024, which could have been distributed as additional take-home pay, plus €22 billion owed to social security funds and €7 billion in unpaid income tax. Immigrants, particularly those who are recent arrivals, are disproportionately affected due to their limited familiarity with German labor laws.
The German government's watchdog, the Federal Customs Administration's Financial Control of Undeclared Employment (FKS), has initiated over 6,200 investigations in 2024, but remains chronically understaffed with 2,500 positions unfilled. The DGB emphasizes the severity of wage theft, urging rigorous prosecution and severe punishment for employers violating wage laws.
Written by urgent.news from The Local Germany's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
