Circumventing the statutory minimum wage in Germany over the past decade has caused significant harm to workers, the welfare system and the state treasury. The total amount of economic loss is estimated at €64 billion, the result of systematic non-payment of the legally guaranteed minimum to workers across the country.
The calculations were carried out by the German Trade Union Confederation (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 around €35 billion. This portion of the damage represents the largest share of the total loss, directly affecting employees' standard of living.
The welfare 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 short 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 huge 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 mainly employed in hospitality, retail and agriculture. These industries are often at the centre of such practices, where the monitoring of working time and wage payments is particularly sensitive.
