Minimum wage fraud - Union estimates total damage at 64 billion euros over ten years
Unpaid working hours, fictitious deductions, unrealistic standards, and the circumvention of the minimum wage have cost Germany around 64 billion euros in the last ten years, according to calculations by the Confederation of Trade Unions.
The affected workers alone, who did not receive the full minimum wage, suffered losses of 35 billion euros. Social security funds lost 22 billion euros, while the state treasury was deprived of seven billion euros in income tax. The analysis covers the period from the introduction of the minimum wage in 2015 to 2024.
According to the union, around six million people are currently paid the minimum wage in Germany, mainly in gastronomy and hospitality, trade or agriculture. However, in practice not everyone receives their full minimum wage, based on the work done. For example, they are not paid in full for their working hours. The legal minimum wage is currently at least 13.90 euros per hour for all professions. No one can be paid less per hour, except in exceptional cases, such as trainees.
According to calculations, since the introduction of the minimum wage, these losses have affected an average of two million workers per year. Trade unionists refer to data from the so-called Socio-Economic Panel - an annual survey covering around 30,000 people in 20,000 households. Experts calculated that on average workers were missing out on between 1.70 and 2.40 euros per hour.
The state authorities are trying to react through the Financial Control of Illegal Work (FKS), which operates under German Customs. In 2024, almost 6,200 investigative procedures were initiated on suspicion of violations of the Minimum Wage Act and a total of 25.4 million euros in fines were imposed.
What field inspectors most often encounter are incomplete or inaccurate data on working hours; workforce falsely presented as interns; standby time, preparation time for work or travel that is not paid at all; and even agreements with employers for payments below the minimum wage, which workers accept for fear of losing their jobs.
Energy transition requires 151 billion euros of investments - Energy Community: 10-30% from public funds, private capital crucial
The transition to green energy in the countries of Southeastern and Eastern Europe is entering its most costly phase: that of implementation. Around 151......
In the fight against the fires in Tirana, Dibër and Krujë/ Ministry of Defense: 2 planes and 2 helicopters on the ground
Of the 35 fires in the last 24 hours, 8 are still active, the Ministry of Defense announced. A total of 533 operational forces and 39 firefighting vehicles......
Forecast: By 2050, fire damage will be 7% of GDP/ National Plan: Reforest bare forest areas
Forest fires, fueled by extreme high temperatures, are becoming one of the most significant climate hazards for Albania. According to figures from the......
Karboni, Shqipëria me avantazh ndaj rajonit/ Raporti: Kosto zero për eksportet e energjisë elektrike drejt BE-së
Shqipëria rezulton në një pozicion të favorshëm krahasuar me vendet e tjera të rajonit sa i takon ndikimit të Mekanizmit të Rregullimit të Karbonit në Kufij,......
Elbasan Bypass, contracts signed for the first two phases/Investment of 4.72 billion lek including VAT, paving the way for the start of works
The Albanian Road Authority has signed contracts for the construction of the first two phases of the Elbasan bypass, paving the way for the start of works on......
Europe on fire, fires spread across the continent/ Hundreds of people evacuated from Croatian and Greek resorts
Record heat and drought that scientists attribute to climate change have created ideal conditions for wildfires across Europe this summer, particularly in......
Ukraine, the steel industry hit by war/ Facing a new obstacle: EU rules
Workers at Ukrainian steel giant Zaporizhstal have kept the complex running in the face of Russian drones, missiles and bombs. But now, the nearly......
Trump's cryptocurrency bank company/ US regulator approves granting of banking status
The U.S. national banking regulator on Friday conditionally approved an application for a banking charter for World Liberty Financial, a company linked to......
