a significant portion of jobs remain classified as low-wage positions, despite recent increases in the statutory minimum wage.. As of April 2025, approximately 6.3 million jobs fall within this category, representing 16% of all employment relationships – a figure unchanged from the previous year.
While a decline was observed over the decade leading up to 2024, shrinking from 21% in April 2014, the pace of improvement has stagnated. The most substantial reduction occurred between 2022 and 2023, linked primarily to the rise in the minimum wage from €9.82 to €12.00. The low-wage threshold in April 2025 was set at €14.32, a slight increase from its value in 2024.
The distribution of low-wage jobs is heavily skewed towards specific sectors. The hospitality industry demonstrates the most acute concentration, with over half (51%) of all employment relationships classified as low-wage. Significant proportions are also found in agriculture, forestry and fishing (45%) and the arts, entertainment and recreation sector (36%). Conversely, the public administration, environmental services, education and finance/insurance industries exhibit comparatively low levels of low-wage employment.
Critically, the gap between high and low earners – the measure of wage inequality – has remained largely constant. While the lowest earners (the 1st decile) have seen a notable wage increase of 3.5% and the median wage has risen by 3.9%, the growth for the top 10% (the 9th decile) has lagged far behind at only 1.5%. This sluggish wage growth for higher earners, juxtaposed with the relatively modest increase in the statutory minimum wage (3.3%), raises concerns about a widening chasm in income distribution.
In 2025, those considered “better earners” earned 2.95 times the hourly wage of those earning “low wages”. The current figures highlight the limitations of minimum wage increases alone in addressing the structural issues contributing to persistent low-wage employment and the ongoing persistence of income inequality within Germany. Further reforms, focusing on sectoral wage negotiations and potentially, stronger enforcement of labor standards, may be necessary to achieve more equitable outcomes and truly alleviate the burden on low-wage workers.
