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Germany’s Low-Wage Share Holds at 16% as 6.3 Million Jobs Fall Below €14.32 Threshold

Destatis reports a pause in the decade-long decline, reflecting past minimum-wage gains alongside persistent pay gaps.

Overview

  • The low-wage threshold stood at €14.32 per hour in April 2025 with a national median of €21.48, leaving the share unchanged from April 2024.
  • Hospitality had the highest concentration of low-paid jobs at 51%, followed by agriculture at 45% and arts and entertainment at 36%, with public administration at just 2%.
  • Pay dispersion was largely steady, as the top decile earned €39.65 per hour versus €13.46 for the bottom decile, a ratio of 2.95.
  • Saxony’s low-wage rate edged down to 18.1% (about 313,000 jobs) from 18.6% a year earlier, while Thuringia stood at 17.1% (around 146,000) and is about half its 2014 level.
  • Destatis links the sharpest prior drop to the 2022–2023 minimum-wage jump from €9.82 to €12.00, and the statutory rate is €12.82 in 2025 with a scheduled rise to €13.90 on January 1.