Close to one-quarter of full-time employees' income falls below EUR 2,750 per month, gross pay.
In Germany, the current wage landscape is undergoing changes, with the minimum wage set to rise in the coming years. As of January 2024, the minimum wage will increase to €12.41 per hour, with further increases planned for 2025 and 2027, reaching €14.60 per hour [1][3]. Despite these increases, wage growth remains modest, with real wage growth around 1.6% in May 2025, varying significantly by occupation [5].
The average gross monthly wage in Germany stands at approximately €4,000 (4,000 euros) as of 2025 [2][4]. However, the pension income of many retirees falls significantly below this figure. According to the Federal Statistical Office, a person is considered at risk of poverty if their net income is below €1,378 per month. This means that pensioners earning below about €563 per month (for singles) or €1,000 per month (for couples) are at risk of poverty and may require additional support [2].
Around 4.6 million people in Germany earn less than €2,750 gross per month, with approximately every fifth full-time employee falling into this category [4]. Forty percent or 9.2 million people earn less than €3,500 gross per month. The eastern federal states, such as Mecklenburg-Vorpommern, have the highest proportion of people in the lower wage group, with 36% of full-time employees earning less than €3,500 per month [4].
The statutory pension accounts for 53% of the gross incomes of people aged 65 and over in 2023, with transfer payments and other sources accounting for 21% [6]. Occupational pensions account for 7%, and further earned income accounts for 13% [6]. In contrast, private provision accounts for just 6% of the gross incomes of people aged 65 and over [6].
Moreover, more than one in four people aged 45 and over in the pension system receive less than €1,300 in pension, with over one in four people in all eastern states, as well as in Schleswig-Holstein, Lower Saxony, Rhineland-Palatinate, and the Saarland, falling into this category [4].
The Left party in Germany believes that a monthly gross wage of more than around €3,300 is necessary to receive a statutory pension at the level of the at-risk-of-poverty threshold [7]. Dietmar Bartsch, a left-wing MP, has criticised the government for not setting a minimum wage of €15 as the lowest wage limit and has called for a "serious wage offensive" [8].
In conclusion, while average wages in Germany remain above the poverty line, pension incomes can be much lower. The social system in Germany provides minimum subsistence support to prevent old-age poverty, but more needs to be done to address the issue of low wages and poverty among retirees.
| Metric | Amount (€) | |-------------------------------|-----------------------------| | Minimum wage (2024) | 12.41 per hour | | Minimum wage (2025 projected) | 12.82 per hour | | Minimum wage (2027 planned) | 14.60 per hour | | Average gross monthly salary | ~4,000 per month | | Pension at-risk-of-poverty threshold (single) | ~563 per month | | Pension at-risk-of-poverty threshold (couple) | ~1,000 per month |
In the context of Germany's economic landscape, the finance sector and business world may be significantly impacted by the ongoing wage changes, as the minimum wage hikes could influence the overall spending power of citizens, potentially impacting consumer spending and business revenue. Additionally, the wide income disparity among retirees, with many earning less than the at-risk-of-poverty threshold, highlights the need for comprehensive financial support mechanisms, potentially involving improvements in pension systems or additional social welfare programs, thus impacting the finance and business sectors as well.
