The low-wage rate shows the proportion of employment relationships that are paid by less than two thirds of the median earnings of all employment relationships.
The decisive criterion for earnings to be classified as low wages is their difference from the general wage level. This refers to gross hourly earnings and includes all jobs in paid employment in Sections A to S of WZ 2008 for which wages were paid in April 2023. Apprentices are not included.
Low wages start at 13.04 euros
In April 2023, the low-wage threshold was gross earnings of 13.04 euros per hour. Lower hourly earnings were classified as low wages.
Low wage for one in six employees
In 2023, 16% of the employment relationships are paid by low wages. Hence, one in six employment relationships are paid by less than 13.04 euros per hour in gross terms. Compared to 2018, the share has decreased from 21% to 16%.
As 18% of the jobs in the new Länder received low wages, low wages were more widespread there than in the former territory of the Federal Republic, where the percentage was just 16%.
Female, young, working in the service sector
Low wages were distributed very unevenly across groups in society and economic branches. In 2023, 19% of the women got low wages, compared with 13% of the men. The main reasons are that women frequently work in low-paid occupations and branches and much more often have part-time jobs or are in marginal employment.
Age plays a role, too. An above-average number of young employees received low wages. 40% of all people in paid employment under 25 years got low pay. Employees aged 65 and older are also affected at an above-average rate of 37%.
In 2023, the proportion of low-wage earners was particularly high in accommodation and food service activities (51%), followed by employees in agriculture, forestry and fishing (43%). However, there were also many low-wage earners in the arts, entertainment and recreation sector (36%) and in the branch of other service activities (31%), e.g. building management and tour agencies.
| Kind of education | % |
|---|---|
| Source: Earnings survey April 2023. | |
| No vocational qualification attained | 37 |
| Recognised vocational qualification | 15 |
| Higher education degree | 6 |
| Total | 16 |
Qualification is protection against low wages
Only approximately 6 % of the employees with a higher education degree received low wages in 2023. The proportion was 15% among employees with a completed apprenticeship or a full-time vocational school certificate. At 37%, it was significantly higher for employees without vocational qualification.
Information on the Indicator
Description or definition
Low-wage jobs as a proportion of all jobs in paid employment. Low wages are defined as earnings of less than two thirds of the median earnings across all jobs in paid employment. The median divides the earnings distribution into two halves, which means that one half of the employees earn less and the other half earn more than the median value. Gross hourly earnings are used as the basis for calculation. In 2023, the low-wage threshold in Germany was gross earnings of 13.04 euros per hour.
The results refer to NACE Rev. 2: Statistical classification of economic activities, edition 2008.
Source
Earnings survey April 2023
Information for interpretation
The jobs evaluated comprise not only main jobs but also second and additional jobs in paid employment. Also included are jobs of people who are not employed or self-employed in a main job but do have a paid job, such as pupils or pensioners doing mini-jobs. Apprentices are not included.