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One in four earns less than €9.15 an hour

Published: 14 Mar 12 10:52 CET | Print version
Online: http://www.thelocal.de/money/20120314-41321.html

The number of badly-paid Germans is rising, with around eight million (23 percent) German workers earning less than €9.15 an hour – 2.3 million more than in 1995, a new study published on Wednesday shows.

The study, which debunks the image of Germany as Europe’s last bastion of high wages, found that as many as 4.1 million Germans earned less than €7 an hour, 2.5 million less than €6. A further 1.4 million people’s hourly rate did not even clear €5 an hour.

Nearly 800,000 workers have to get by on less than €1,000 a month.

The new report, seen by the Süddeutsche Zeitung newspaper, also found that low income workers earned an average of €6.68 an hour in former West Germany and €6.52 in former East Germany.

And there was a huge disparity between eastern and western Germany in the rate of increase in low wages. Between 1995 and 2010, there was a 68-percent increase in low income workers in the former West Germany, compared to only three percent in the former East.

People in €400 “mini-jobs,” which are supported by government benefits, are the most likely to earn less than €9.15 an hour.

“Other groups with a large proportion of low-income workers are under-25s, people with limited contracts, immigrants, and people without a job qualification,” the report said.

Despite this last category, the majority of the eight million people on low incomes have completed job training.

The study, which was based on data from 12,000 households, is likely to reignite the country’s ongoing debate on a single minimum wage. The researchers believe that one in five German workers would benefit from a minimum wage of €8.50 an hour.

The Social Democratic Party (SPD) and the Green Party are in favour of a national minimum wage, while business associations say that it would destroy many jobs.

Germany has no unified minimum wage, but collective bargaining agreements between employers and trade unions mean that minimum wages have been agreed in certain sectors, though these are often confined to certain states.

The Local/bk

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Your comments about this article:

#1
12:28 March 14, 2012 by smart2012
The time of rich Germany is finished... Ask all taxi drivers, waiters, restaurant owners in Germnay if it is better now or it was better 25 years ago.... The answer is not difficult. This is as there are less and less qualified technical jobs in Germany, as all productions now happen in East Europe, China, India etc... By spending all her time in blaming Greeks of ruining EU, Merkel is missing the crucial point... Well done!
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#2
13:17 March 14, 2012 by Englishted
Just take a look on the arbeitsagentur,you will see nothing but job agencies paying peanuts,yet in most you must have a car and be ready to work shifts and travel up to 30km one way.

I am glad this report has come out to disprove the bullshine given out about a boom time here.

Put this together with other reports on the number of part-time ,mini-jobs and €400jobs and you will find that this country will implode when the time comes for the workers on these wages to retire and they did not earn enough to have anything put by let alone any private pension .

Stupid idea of €400 job to help back to work now employers use 2 people and pay nothing back into the system .

I worked in a successful company that now only employs agency people in the section I worked had 2 full time "normal" workers and 9 agency workers on far less money and no rights .

Naturally the full time employees fear the agency workers because they could be next, solidarity and some union support would help as employers do what good capitalists do and exploit the situation to their advantage as can be seen in this report.
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#3
14:12 March 14, 2012 by ttrs2.5
Ah, the usual moaning from the bleeding hearts and those that think the world owes them a living i see. if you're too stupid to make your own way in the world and rely on cleverer people to 'give' you a job (rather than proving why you should have one, or why you are worth more than 6 euros an hour) then what do you expect? Generally speaking, the market is pretty good at determining what people are worth, and if someone is getting paid 6 euros an hour, it's because that is the value of their contribution. I'm self employed, in the top 1% of earners, and for me and most of the people i know, it certainly is boom time in Germany, thanks very much. The reason? We have skills that are valuable. The world is not a fair place and people are not created equal. The real problem is that the less equal people are too lazy to improve themselves - they usually just resort to strikes, rioting or watching TV. If more of them took responsibility for their lives instead of expecting to be spoon fed and have their hands held from cradle to grave, there would be a lot fewer people earning 6 euros an hour.
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#4
14:28 March 14, 2012 by ChrisRea
Let's put things in perspective. The article compares figures from 1995 and 2011/2012. Basically it says that 2.3 million more people earn less then 9.15 euro/hour. Considering that in 1995 the working population was about 3.3 million smaller (37.7 million in 1995 compared to 41 million now), it means that the German economy not only kept the jobs without decreasing the salaries, but it added 1 million jobs paid better than 9.15 euro/hour and 2.3 million jobs paid less than 9.15 euro/hour.

Who are these people? Well, my guess is that most of them are immigrants (many of them still in the integration process - learning the language, acquiring a qualification). So I find it normal that two thirds are not earning a fortune.

On a macroeconomic level, the GDP/capita (PPP) increased every year. I found data only starting 1999, when it was $22,700. In 2010 it reached $35,700. Not bad, I would say.
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#5
14:43 March 14, 2012 by wolfgang60
.....and what you expect of a window cleaner more than $ 9 ?.... what to argue here?The article stated low income workers earned €6.68 and people in $400 jobs supported by government benifits are likely the one most likely earning below $9 . The figures they are earning are fair and justified and it's not a surprise!
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#6
15:23 March 14, 2012 by Englishted
So suddenly "Between 1995 and 2010, there was a 68-percent increase in low income workers in the former West Germany, compared to only three percent in the former East."

All the work in west Germany became of less value? ,following this line the whole world should work for the wages earned by the lowest paid no matter in which country.

@ttrs2.5

If you are one of the top 1% of earners and have the attitude and grammatical skill you have shown in your comment no wonder there is something wrong with this country.

@ChrisRea

Once again you argue your corner well but somewhere the figures don't match ,how can there be a increase of 71% of low earners and you say there is no increase.

There is also no allowance for cost of living increases between 1995 and 2010 and to relate that to poor pay ,the cost of living increase must only take into account things that are essential for a minimal life not that the cost of a new car for example may be cheaper (plucked out the air) whereas energy costs have rocketed .

Do we want a society that is so unequal? where self interest and greed are the norm because I fear it is coming and I think it is a step backwards.
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#7
15:27 March 14, 2012 by catjones
The gov is not so much interested in worker's welfare than worker's taxes. The higher the wage, the higher the taxes.
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#8
16:51 March 14, 2012 by ChrisRea
@ Englishted

"Increase of 71% of low earners" you say? :) No, you cannot add the two percentages (68% and 3%), as they apply to two different numbers, i.e. the number of low-paid people in Westen part of Germany and, respectively, number of low-paid people in Eastern part of Germany. If you want to aggregate them, then it is 40.35% for the whole Germany (5.7 million low-paid people in 1995 and 8 million in 2010).

If you carefully read my post, you noticed that not only the number of low-paid people increased, but also the total number of people employed. The latter increase is in absolute terms bigger and that means that also the number of people earning more than 9.15 euro/hour increased (by one million to be more precise).

So, on average, it does not mean that people who used to earn more than 9.15 euro/hour get now under this threshold. It actually means that the newcomers to the labour market are quite many (3.3 million more) and that only 2/3 of them earn now under 9.15 euro/hour, the rest earning above this amount.
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#9
17:20 March 14, 2012 by smart2012
what I guess this article shows is that Germany is a very normal western country, where big part of population struggle with a badly paid job (where most of the money goes into tax), and a few have good money (mostly self employed people). When I hear talking about boom time, boom time is for the few who most probably do not pay taxes and invest their money in Luxemburg or Switzerland. Eighties was boom time for Germany and EU, now if u want to see boom time go to Dubai and Singapore
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#10
17:30 March 14, 2012 by leuteleute
The article is correct and fair of what low incomes are earning.People working through agency are mostly foreigners and unskilled people.They work as window cleaners,packers etc... they are earning 5-8 uro and that's what they are worth .Why you expect more? For hartz 4 (no head ache how to pay his apartment in the next month) who even got govt. benefits and have a 400 euro jobs?People are crying the society is so unequal.

Don't cry why the educated and skilled people got high income than you.
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#11
17:47 March 14, 2012 by OkieinBerlin
And we now hear from the 1% -- and it's reassuring to see that no matter where or when they sound off, the 1% continues to prove itself a pack of degenerate lowlifes.

Tell us please, Mr. 1%, what you do that is so important to the rest of us -- besides sitting around reading third-rate internet newspapers and stroking your own sense of superiority?
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#12
22:04 March 14, 2012 by ovalle3.14
If I were on the top 1% I'd probably also look down on the other 99% and think they're lazy and stupid.
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#13
03:06 March 15, 2012 by kavadias
I am Greek but, it seems, you miss a crucial ...detail. The title says "One in four earns less than". One in four. Was that so in 1995? Your society is becoming poorer. More people would like it to change. Economy is not going as well, obiviously. You cannot judge the strength of the economy in absolute terms @ChrisRea. 3 million more jobs are not good enough. The living standard has changed to the worse.

Now, can you close your eyes to this? Then you will say that uneducated emigrants are the problem of tha economy (and maybe later of the country)? And you will have the well-payed educated Germans save the economy by defending race-discrimination? And will it work?

What will it take to see that an economy's strength is relative to other economies, and stop expecting increasing competitiveness of your selves?

The most tragic, all over the developed world, is that a small part of each society is doing more and more well, while the largest part of every society is doing worse every year. One in four for you, now....
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#14
08:54 March 15, 2012 by ChrisRea
@ kavadias

You are right, it was not so in 1995. There were less immigrants back then. Should have the Germans close the borders in order to preserve the ratio of what people earn? I guess not. As most of the immigrants chose to be in Germany, I would say it was good even for the 2/3 of them that earn less then 9.15 euro/hour. Not to mention the one million of them that earn more. I oversimplified here, but the idea stays the same.

It is a bit like starting a small company. As a fresh entrepreneur, I could not pay above the average salary. So it means that my employees will earn less. Would it be better for the society to give up my idea and not create new workplaces?

One could also say that the ratio of people speaking correct German also decreased since 1995. I would say it is normal, it takes time to master a language which is not easy to learn.

'you will say that uneducated emigrants are the problem of tha economy (and maybe later of the country)?' Definitely not. Germany is beneficial to them and they are beneficial to Germany (there is still a lack of workforce, both qualified and unqualified). If you want, it is similar to the '60s, when the Wirtschaftswunder demanded Gastarbeiter. Were they better paid than the average German? No. Was it worth for them to work in Germany? Yes. Did it also bring challenges (integration challenges, to be more precise)? Yes, but I would say it was worth. Definitely race discrimination (just as any other discrimination) would not make the world a better place.

'What will it take to see that an economy's strength is relative to other economies?' You are right again. There are not many economies that can say they brought 10% more workplaces, as Germany did. So, in comparison with other countries, the German economy is pretty powerful.
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#15
10:48 March 15, 2012 by bluestratus
Who is this ttrs2.5 and where does he get off? I think you, like Edwina Curry, are slightly out of touch with reality. It´s not about low pay, but being underpaid. I accept as a proffesional Busdriver that I´m at the lower end of the pay spectrum, and I had a decent wage 10 years ago, but since then no pay rise. We wern´t all fortunate enough to have parents with enough dosh to send us to the best schools. In my school, whenever I tried to get my head down to study, I ended up getting my head kicked in in the playground.Even the Queen said she would be lost without her cleaners. Without low paid workers you´d have to clean your own street, get rid of your own rubbish, wash your own mercedes, and the poor techy who fixes your mercedes?? I am a low paid worker, and I accept I cannot go to the carrabean 5 times a year, but at the moment I cannot afford 1 trip to the UK a year anymore after the rents paid etc. No I don´t have a plasma TV or smartphone..and I work 12, 14 hour shifts but only paid 39 hours, the rest ( Breaks etc) are now unpaid, even though I´m still at work. This is the argument in Germany at the moment.
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#16
11:36 March 15, 2012 by smart2012
@ Chris Rea, I guess u are missing the point... What we are telling you is that Germany represents a standard western country, where you have more poorer and less reacher... whoever they are (the people you mention as immigrants have in most cases a German passport....)

Germany did good after the unification with East Germany (thanks also to EU support hence mediterranean countries help), and statistics show improvement (versus start of unification.... NOT BEFORE!!!!), however it is clear to everyone living in Germany that situation now is worse than before the unification.... Immigrants were coming to Germany, working 10 years, and going home buying a villa... Now they work like crazy and they will die poor. And this is the same for Germans middle level which cannnot afford anymore vacations in garda see, or lost their money in stocks, or their jobs in Munich (see Siemens/Thyssenkrup/Schlechter/Karstadt/IBM)
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#17
12:28 March 15, 2012 by AlexR
The Local article "Published: 14 Mar 12 10:52 CET: One in four earns less than €9.15 an hour"

Previous Local article "Published: 14 Mar 12 07:33 CET: Top German execs earning more than ever"

Says it all really...
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#18
14:58 March 15, 2012 by ChrisRea
@ smart2012

Thank you for making judgments on issues I did not approach. :) I guess that means you agree with me on the points I made.

I will try to indulge you and comment on the issues you raised. "standard western country, where you have more poorer and less reacher" you say? I guess you can leave out the word 'Western'. In Eastern Europe it is the same, in South America is the same. On the other hand, the smaller difference between rich and poor in the world is in Denmark. Do they not qualify as Western country?

'it is clear to everyone living in Germany that situation now is worse than before the unification...'

'Germans middle level which cannnot afford anymore vacations in garda see'

Funny, the part of my family that is living in Germany is not aware of that. They are definitely middle class, but they continue to travel abroad for pleasure. My father-in-law is translator, my mother-in-law is social worker. They will most probably go this year or the next to Galapagos Islands (they are crazy about observing nature). And no, no inheritance is involved.
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#19
15:46 March 15, 2012 by wolfgang60
'Germans middle level which cannnot afford anymore vacations in garda see'

pity this kinds of comment, that vacation is the only thing you can show as your status symbol. How about jobs? I have a good paid job here, but my vacation is more cheaper than my neighbor who are struggling, they are flashing their money for vacations because that's the only thing they can show of in their life.Career nothing.

you cannot measure wealth of a person how many vacations he had, many in lower class go on vacations to show of that they have more than his neighbor, tighten his belt to save for the whole year just because he wants vacation for his family and some even go on credit. But to look what jobs his wife and him you can count immediately that they are struggling just to have vacations.Vacations means spending, to those who are struggling,you can spend all the money you save for the whole year in your vacation when you go back you are empty.
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#20
16:10 March 15, 2012 by taxpayerrr
I'm single but I spend my money on cars than vacations.
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#21
17:43 March 15, 2012 by mili17
"however it is clear to everyone living in Germany that situation now is worse than before the unification.... Immigrants were coming to Germany, working 10 years, and going home buying a villa... Now they work like crazy and they will die poor. "

It's not clear for me what you are talking , I'm living in Germany certainly not worse here, many have jobs, middle class here have good incomes compare to other EU countries who experienced cuts, freeze of salaries, austirities from the governments, high unemployment and more... ok if you are not living here and you are talking nonsense I can forgive you.
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#22
18:17 March 15, 2012 by Englishted
When the gap between rich and poor or haves and have nots if you like get greater and greater year on year you are heading for problems , @ChrisRea you facts and figures still do not explain the 68% increase in poorly payed jobs in Western Germany as I began find a job from the unemployment office that is not through a agency .If it was looked into I would bet there is corruption as to which agency gets most referrals.

I know something is wrong when having got my qualifications the wages are now less than I got per hour 11 years ago ,and that was less than England in 1982 .

I am finding harder and harder to keep a roof over my families head ,but it is boom time .

Hardly surprising there is a rise in support for parties on the extreme.
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#23
19:10 March 15, 2012 by leuteleute
"I know something is wrong when having got my qualifications the wages are now less than I got per hour 11 years ago ,and that was less than England in 1982 ."

Can you state here what job you are talking that the wages is less than 11 years ago and less than in england in 1982?
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#24
19:49 March 15, 2012 by hallopeople
We Germans are used of all this kinds of bullying from the losers and we just ignore them. We are poor, we cannot go on holidays, we are struggling , we are nazi or whatever . We considered it as a provocation from somebody who have luck of success and don't feel good of his/her condition.
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#25
20:29 March 15, 2012 by mili17
nonsense the more holidays you have , the more your pocket is empty.I'm not talking the real rich. Even some rich don't have holiday per year. So much nonsense comments I read here.
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#26
21:46 March 15, 2012 by smart2012
Guys, the holiday thing was just an example...i live in Germany, i know some people live well, but I also know people are struggling (as per article above, even in Munich). My key point is in my first comment I wrote. This is where now German government is missing and hiding the point at my eyes... See also later article on Chinese buying German companies...
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#27
09:38 March 16, 2012 by Michael R
TO A LOT OF THE WHINERS ON HERE. THE REASON YOU CANT FIND DECENT PAYING JOBS IS SIMPLE. YOU CAME HERE WITHOUT ADEQUATE QUALIFICATIONS.

Same applies in the UK or the USA, or any other western country were you will have the same problems. I came to Berlin with British teaching Qualifications and once my PGCE was recognised by the Berliner Senat fuer Schulen, I found several teaching posts in normal state schools in a matter of a week. My wife is a research scientist and was hired right after her interview after sending out a couple of e-mails. You will also need to speak the language of the country you chose to relocate to.That the lowest wage earners are poor and top executives are rich is a common problem throughout most of the western countries, and not limited to Germany.
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#28
09:59 March 16, 2012 by Englishted
@leuteleute,

Yes , any job in the construction industry that is trade based ,for example bricklaying,dry lining ,painting and decorating.

I Germany the rate when I arrived was 22 marks a hour ,that became 11 euros ,and now the rate is far below that.Because firms no longer pay tariff or it would be higher.

In the U.K. there was a housing boom in the early 80's but that bubble burst so it was only for a short period but it is true.
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#29
12:36 March 16, 2012 by jg.
The 1 euro jobs are adding to this problem. Whilst it seems like a good idea to force the long term unemployed back into work, the 1 Euro job scheme is being exploited by some employers. The theory is that, once someone has established themselves in a 1 Euro job, the employer will then take them on full time. The reality is that many employers (e.g. the building industry) will only employ 1 Euro workers and will refuse to take on the same workers directly. This does not only apply to people without any qualifications but also to skilled tradesmen.
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#30
16:50 March 16, 2012 by ChrisRea
@ Englishted

It might be that what you earn has more to do with your personal situation (qualification, experience, soft skill and not lasty language skills). A typical bricklayer (Mauer) earns around 2000 Euro/month (~15 Euro/hour). Of course, this depends also on the region, so you might consider relocating if you want a higher income, especially as in your case apparently your income remained at an old level. You can find some more information here http://www.helpster.de/maurer-gehalt-so-entscheiden-sie-ob-der-beruf-der-richtige-fuer-sie-ist_31033 and some regional comparisons here http://www.gehaltsvergleich.com/gehalt/Meister-Meisterin-Maurerhandwerk.html.

I hope that in the meantime you understood the issue with the percentages (that an increase of low earners is compatible with an increase of high earners).
Report abuse »
#31
17:21 March 16, 2012 by Englishted
@ChrisRea,

Thank you ,last time I worked for a "proper " firm the tariff was €15. 65 per hour that was 7 years ago ,but the firm went to the wall (no pun intended) as competition from non tariff firms lowered prices .

Many "firms " in the construction industry pay €5 a hour and I can live on that but the workers who can are not based in my region (N.R.W.) they come from farther east , which also may account for any language skills problems I have as I can only speak the two, I believed I would need.

Yes I understood, however I still think a country that allows the gap between rich and poor to increase vastly year on year is building problems for the future and the near future at that.
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