Violations of Germany’s minimum wage rules have caused an estimated €64 billion ($74 billion) in economic losses since the statutory wage floor was introduced in 2015, according to the German Trade Union Confederation (DGB).
Workers who were not paid the full minimum wage lost €35 billion, while social security funds missed out on €22 billion in contributions and the state lost €7 billion in income tax revenue, according to a DGB analysis seen by dpa.
“Part of the funding gaps is due to criminal behaviour by employers who fail to meet their legal obligations,” the DGB said.
The analysis is based on employee data on income and working hours from Germany’s long-running Socio-Economic Panel survey.
According to the DGB, an average of around 2 million workers a year have been underpaid since 2015, receiving between €1.70 and €2.40 less per hour than required.
Germany’s statutory minimum wage currently stands at €13.90 per hour, with only limited exceptions, including for interns.