Germany Sees Sharp Decline in Low-Wage Jobs Over Past Decade

The introduction and increases to the minimum wage have significantly reduced the number of low-wage jobs, especially in eastern Germany.

The number of low-wage jobs in Germany dropped by 1.3 million between 2014 and 2024, reducing their share of total employment from 21% to 16%.
Eastern Germany experienced the most significant decline, with the proportion of low-wage jobs nearly halving from 35% to 18%.
The statutory minimum wage, introduced in 2015 at €8.50 per hour and now at €12.82, is credited as a key factor in reducing low-wage employment.
Despite the progress, Germany still has a relatively large low-wage sector compared to other European nations, and unions are advocating for further increases to the minimum wage to €15 per hour.
Women, younger workers, and those in sectors like retail, hospitality, and personal services remain disproportionately represented in low-wage positions.