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Germany’s Minimum Wage Rise Is Undercut by Cuts to Hours and Perks

Labor groups report widespread circumvention that could be denying more than two million workers their lawful pay.

Overview

  • The statutory minimum wage increased to €13.90 per hour at the start of the year, yet many workers say their monthly pay has not risen.
  • Employers are reducing scheduled hours—often from about 40 to roughly 37—and shortening opening times, keeping overall earnings unchanged.
  • Tasks previously paid outside opening hours, including prep and cleanup, are now squeezed into shifts, and some firms no longer count changing or internal travel as work time.
  • A court in Saxony-Anhalt ruled that construction workers labeled as self-employed were in fact employees and imposed a two-year suspended sentence on the contractor.
  • Other measures include switching to piece or commission pay, removing evening and weekend surcharges, and raising deductions for seasonal workers’ housing and food, with many employees staying anonymous out of fear.