Germany minimum wage violations cost 64 billion euros

Calculations by the German Confederation of Trade Unions (DGB) reveal that bypassing statutory minimum wage regulations in Germany has caused approximately 64 billion euros in damages between 2015 and 2024.

Of this total, workers lost an estimated 35 billion euros in unpaid wages. The social security system suffered losses of roughly 22 billion euros, while the state lost 7 billion euros in income tax revenue. The DGB estimates that these irregularities affected an average of two million employees annually, with workers missing between 1.70 and 2.40 euros per hour.

Employers utilize various methods to circumvent the law, including unpaid overtime, fictitious wage deductions, arbitrary fines, and unrealistic work standards. Other tactics identified by German Customs include inaccurate timekeeping, misclassifying workers as interns, and failing to pay for preparation time or standby duties. Currently, approximately six million people in Germany work for the minimum wage, which stands at 13.90 euros per hour, primarily in the hospitality, retail, and agricultural sectors.