Living on the Edge: Over 826,000 Germans Struggle on Minimum Wage, State Spends 7 Billion Euros on Allowances
State dispenses seven billion euros through 826,000 availing of assistance - Taxpayer funds provide substantial aid to citizens - State-funded salespersons: Over 826,000 individuals - EU spends seven billion euros
Let's dive into the grim reality faced by a staggering 826,000 employed individuals in Germany, who, despite working, can't make ends meet and have to rely on government assistance due to their meager earnings. The heavy toll? A whopping 7 billion euros! The Feds spilled the beans to DPA after Left Party MP Cem Ince's inquiry. This troubling statistic, interestingly, marks the first upward tender in the number of these 'toppers' since 2015.
Back then, Germany ushered in the era of a statutory minimum wage of 8.50 euros per hour. Since then, the number of 'toppers' took a nosedive, dropping from a whopping 1.2 million to 796,000 people by 2023. But, brace yourselves, the 2024 statistics tell a grim, reversing story.
The current minimum wage clocks in at 12.82 euros. The Minimum Wage Commission is deliberating potential hikes. Federal Chancellor Friedrich Merz hasn’t ruled out an ambitious 15 euros an hour by 2026. Employers, however, consider this an overstep.
Struggling to Survive on a Job: An Unjust Scenario
Left Party MP Cem Ince views the soaring 'topper' count as compelling evidence for a wage hike. "It's absurd that hundreds of thousands are reliant on state aid while being employed," he told DPA. "Instead of maintaining the exploitation of labor, we should invest in care services and kindergarten spots – that would help many steer clear of the part-time trap."
According to the Ministry of Social Affairs, the state footed an additional 800 million euros on the citizens' allowance last year, reaching a total of 6.99 billion euros. In 2024, 'need communities' (families or couples with 'toppers') raked in a whopping 11.61 billion euros in assistance.
Mini-Jobbers and 'Toppers': A Shocking Connection
Surprisingly, many 'toppers' are often mini-jobbers, as a Bertelsmann Foundation study revealed. Nearly half of the employed individuals receiving citizens' allowance hold mini-jobs. Around two-thirds of 'toppers' make far less than the average wage.
- Citizens' Allowance
- Minimum Wage
- Mini-Jobs
- It's noteworthy that many 'toppers' in Germany, who rely on state aid despite employment, often hold mini-jobs, which could suggest a connection between low pay and the increasing burden on public finances.
- To address this unjust scenario of hundreds of thousands of employees relying on state aid while struggling to survive, investments should be made in care services and kindergarten spots, rather than perpetuating the exploitation of labor and the reliance on a growing number of 'toppers'.
