Circumvention of the legally mandated minimum wage in Germany over the past decade has caused significant damage to workers, the social security system and the state treasury. The total amount of economic loss is estimated at €64 billion, resulting from the systematic non-payment of the legally guaranteed minimum to workers across the country.
The calculations were carried out by the Federation of German Trade Unions (DGB), which analysed data from the introduction of the minimum wage in 2015 to 2024. According to their findings, workers who did not receive the legally guaranteed compensation were left without approximately €35 billion. This portion of the damage represents the largest share of the total loss, directly affecting the living standards of employees.
The social security system also suffered significant losses, estimated at €22 billion. The state, on the other hand, lost €7 billion in income tax revenue, a direct consequence of reduced wages which formed the basis for calculating tax liabilities.
Irregularities affected an average of around two million employees annually. Workers were on average missing between €1.70 and €2.40 per hour of work. Although these are relatively small amounts per hour, their cumulative effect over millions of working hours has resulted in a massive financial imbalance.
In Germany today, around six million people work for the minimum wage, which is €13.90 per hour. People working for the minimum wage are primarily employed in hospitality, retail and agriculture. These industries are often at the centre of such practices, where the monitoring of working hours and wage payments is particularly sensitive.
