East Germans particularly affected: every fifth full-time employee is a low-wage earner

East Germans particularly affected
One in five full-time workers is a low-wage earner

Almost every fifth German has to get by on a gross monthly salary of less than 2284 euros. Although the proportion of low-wage earners in the population has been falling since 2011, some groups are disadvantaged because of their place of residence, age or gender.

Little money despite a full-time position: Almost every or every fifth employee in Germany is affected according to a current study by the Institute for Economic and Social Sciences (WSI) of the union-related Hans Böckler Foundation. The proportion of employees affected fell from 21.1 percent to 18.7 percent between 2011 and 2020, according to the WSI. In eastern Germany in particular, however, the proportion of low-wage earners remained at a high level.

“On the one hand, our analysis shows some positive trends: In recent years we have succeeded in pushing back the lower pay range,” explained WSI researcher Helge Emmler. According to the study, all those who receive less than two thirds of the average gross monthly salary of all full-time employees subject to social security contributions receive a low monthly salary. For 2020, the gross amount was 2284 euros. The basis for the survey were the employers’ reports on social security.

In eastern Germany in particular, the proportion of low-wage earners fell sharply – but remained at a significantly higher level than among western German employees. The proportion of low-wage earners in eastern Germany fell from 39.3 percent in 2011 to 2020 to 29.1 percent of employees subject to social insurance contributions.

More women than men among low wage earners

In western Germany, the decline was significantly lower at minus 0.5 percentage points – at 16.4 percent in 2020, however, the level was also well below the level in eastern Germany. In cities like Wolfsburg or Erlangen, for example, the proportion of low-wage earners was only 6.4 and 8.3 percent respectively in 2020. In Görlitz or in the Saale-Orla district, however, the proportion was well over 40 percent. The Erzgebirgskreis recorded the highest proportion of low-wage earners with 43.2 percent.

According to the WSI, the factors gender and qualifications also have an influence on income: while a good every fourth woman (25.4 percent) had to get by on a low salary despite a full-time position, the figure was only 15.4 percent for men. 39 percent of employees under the age of 25 also received a low salary. According to the study, many people without a vocational qualification were also poorly paid (40.8 percent). According to the study, 17.8 percent of people with a vocational qualification were among the low-wage earners, compared with just 4.9 percent of people with a university degree.

Low pay despite full-time work was particularly widespread in the hospitality industry (68.9 percent), contract work (67.9 percent) and in agriculture and forestry (52.7 percent). In the arts and entertainment sectors as well as private households (33.2 percent), in logistics (28.3 percent) and in retail (24.9 percent), an above-average number of people earned less than two thirds of the average gross salary. In order to push back the lower pay range further, the increase in the minimum wage to twelve euros per hour is “certainly a step in the right direction,” explained Emmler. In addition, stronger collective bargaining coverage is also required. In the east of Germany in particular, this is much less pronounced than in the west.

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