Insufficient Implementation of the Statutory Minimum Wage Among Marginal Employees

Abstract

In this article, we examine the implementation of the statutory minimum wage of €8.50 per hour for marginal employees (“mini-jobbers”) in Germany. Using two representative datasets, it can be shown that six months after the law came into force about 45% of marginal employees still received wages below the minimum wage threshold. Minimum wage violations are especially prevalent in low-wage sectors such as the hotel and catering sector (70%) and retail (52%), as well as in small establishments (58%). The minimum wage improved the wage situation in Germany, but the large number of violations suggest that more effective public controls are needed.