6.3 million Germans earn low wages

In Germany, approximately 6.3 million employees earned low wages in the latest calculation, with a maximum hourly rate of 14.32 ($16.69), according to the Federal Statistical Office (Destatis) on Friday. The data reflects salaries recorded in April 2025, when the agency calculates average earnings.

This figure represents 16% of all jobs, maintaining the same proportion as in 2024. For comparison, in April 2014, the share of low-wage employment was higher, at 21%. The number of workers in low-paid positions has gradually declined since then, notably during 2022 and 2023.

Defining the Low-Wage Sector

The threshold for low-wage work in Germany is set at two-thirds of the median gross hourly wage, excluding apprentices. In April 2025, this amounted to 14.32, up from 13.79 in April 2024. This benchmark is separate from the statutory minimum wage, which is 12.82 in 2025 and is scheduled to rise to 13.90 at the beginning of 2026.

Experts attribute the long-term reduction in low-wage employment largely to the introduction of the minimum wage. Dorothee Spannagel from the Economic and Social Science Institute (WSI) at the Hans Bckler Foundation explained that the minimum wage has increased earnings for many workers and helped narrow wage disparities.

Analysis: Decline of Low-Wage Employment in Germany

The latest data from the Federal Statistical Office of Germany reveals a gradual reduction in low-wage employment over the past decade. As of April 2025, approximately 6.3 million workers in Germany earned low wages, defined as earnings below €14.32 ($16.69) per hour. This marks 16% of the total workforce, maintaining the same percentage as in 2024. However, the figure is considerably lower than the 21% recorded in 2014, showing a consistent decline over the years.

Several factors contribute to this positive trend. The introduction of a statutory minimum wage has been a significant driver. In 2025, the minimum wage stands at €12.82, set to rise to €13.90 in 2026. Experts, including Dorothee Spannagel from the WSI Institute, point to this policy as a crucial tool in narrowing wage disparities and providing many workers with better earnings than previously. The implementation of the minimum wage has undoubtedly led to more people escaping the low-wage category, which has resulted in a broader income distribution across the workforce.

Despite these improvements, it is important to acknowledge that a large portion of the workforce remains in low-wage positions. As the country moves forward, further efforts may be necessary to continue the trend and further reduce income inequality. However, the ongoing progress since 2014 highlights the positive impact of the minimum wage and similar policy measures in addressing economic disparities.

Sources:

• 6.3 million people work for low wages in Germany

Author: Olivia Parker
Olivia Parker is a journalist and editor with over 8 years in media. She focuses on culture, arts, and social issues, skilled in feature writing and critical reviews.