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Waiters in Munich: Women are even more affected than men

Photo: Ralph Peters / IMAGO

There are significantly fewer low-wage workers in Germany. The number of corresponding jobs has fallen from 7.5 million to 6.4 million, as the Federal Statistical Office announced. One reason for this is the increased minimum wage.

According to the information, almost one in six dependent employees worked in the low-wage sector in April 2023 and earned less than 13.04 euros gross per hour. According to the statisticians, the share of these jobs in all employment relationships was 16 percent - after 19 percent in April 2022.

The low-wage sector includes jobs with less than two-thirds of average gross hourly earnings. The evaluation is carried out once a year for the month of April, which is considered representative. In April 2023 the limit was 13.04 euros; in April 2022 it was 12.50 euros. Trainees are not taken into account.

To put it into perspective: The legal minimum wage was 9.82 euros on January 1, 2022, rose to 10.45 since July 1, 2022 and to 12 euros on October 1, 2022. Since January 1, 2024 it has been 12.41 euros. Industry-specific minimum wages can be higher.

Low wages had recently received particular attention because CDU politicians in particular criticized the citizen's allowance, which increased by twelve percent at the turn of the year, saying that it might be more worthwhile not to work than to work at low wages. They demanded binding rules so that the so-called wage gap requirement is adhered to. However, researchers at the Ifo Institute have now determined that even after social benefits have been increased, work is always more worthwhile than not working.

Many low wages in the catering industry

The chairwoman of the social association, Michaela Engelmeier, called for the millions of those affected to be offered a perspective above the low wage threshold, "as they would otherwise be at acute risk of poverty in old age." In addition, the minimum wage must be increased. "In view of the persistently high inflation, we are calling for a minimum wage of 15.02 euros," said Engelmeier.

The low-wage sector is particularly large in the hospitality industry. In April 2023, just over every second employment relationship (51 percent) was affected. In agriculture, forestry and fishing (43 percent) and in art, entertainment and recreation (36 percent), the proportion of employees who earned less than 13.04 euros gross per hour was also above average.

The lowest wage sector was at four percent in public administration, at six percent in the finance and insurance sector, at seven percent each in the information and communications sector and in the areas of water, waste disposal and removal of environmental pollution.

Women are more affected by work in the low-wage sector than men. Almost one in five women (19 percent) worked in the low-wage sector. Among men it was almost one in seven (13 percent). In both cases the share fell within a year. Slightly higher for women at 23 percent than for men at 16 percent.

Millions only receive minimum wage

According to information, 2.4 million jobs across Germany were paid exactly at the then applicable legal minimum wage of twelve euros last April. This corresponds to 6.2 percent of all employment relationships to which the minimum wage applies. Most were above that. In just over a million cases, the calculated hourly earnings were lower. However, these are not automatically violations of the minimum wage law, the statisticians explained. Not all provisions of the law, such as internships, could be clearly delineated in statistics.

There has been a statutory minimum wage in Germany since 2015.

apr/dpa