Despite a decline, millions of people in Germany continue to have to make do with low wages. The proportion is particularly high in three sectors.
The number of employees in the low-wage sector in Germany has fallen. The earnings of people in around 6.4 million jobs were below the low wage threshold of 13.04 euros gross per hour in April 2023, as reported by the Federal Statistical Office in Wiesbaden. That was 1.1 million fewer than in April 2022.
The share of all employment relationships fell from 19 percent to 16 percent. According to the information, one reason for this is the minimum wage which rose from 9.82 euros to 12.00 euros between January and October 2022.
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.
More women work in the low-wage sector than men
The lowest wage sectors were in public administration (4 percent), in the finance and insurance industry (6 percent), in the information and communications industry (7 percent) and in the areas of water, waste disposal and environmental pollution cleanup (7 percent). .
Almost one in five women (19 percent) worked in the low-wage sector as of the reporting date. 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.
The low-wage sector includes all employment relationships that are paid less than two thirds of the average gross hourly earnings – 13.04 euros in April 2023 and 12.50 euros in April 2022. Trainees are not taken into account in the analysis. The statutory minimum wage has been 12.41 euros gross per hour since the beginning of January.
Source: Stern
