In Germany, the salary indicates whether you belong to the low-income category. But the task is not always so easy. It also depends on what part of the country you live in.
The definition of one. low income people can have a decisive impact on your financial situation. In our article we explain the income limits and give you information on how you can achieve financial stability.
Low-income people: this is the salary limit
Although the minimum wage in Germany increases periodically, not everyone in this country receives a high salary. A portion of the population is considered low income. But what salary is considered low in Germany? According to a study by the Institute of Economics and Social Sciences, a person with a full-time job in Germany is considered low-income if their gross monthly income is accurate. 2,203 euros or less quantities.
However, with this income you are not considered a low-income person throughout the Federal Republic. Due to the different situation on the labor market and the cost of living, the Federal Statistical Office calculates separate values for the old and new federal states.
In the East the low income threshold is lower
Compared to the West, in the East there is a clear discrepancy in the low-income threshold. While in the West workers with a gross monthly salary of 2,289 euros are already considered low-income, in the East this limit is much lower. Here you are considered a low-income group with gross income of up to 1,805 euros.
Determining the economic situation of families is much more difficult because, according to the Federal Statistical Office, there is no clear definition. However, families are generally considered to be low-income if they depend on benefits such as child benefit (KiZ), Hartz IV or education and participation benefits (BuT).
Almost one in five people in Germany is considered low-income
Did you expect that? According to a study by the Hans Böckler trade union foundation almost one in five people in Germany to the low-income group. According to these data, around 20 percent of Germans have to make do with a gross salary of only 2,284 euros per month. Women, young full-time workers and people without professional qualifications are especially affected by low incomes.
But that is not all. The study also shows that, in particular, inhabitants of eastern Germany are more likely to belong to the low-income group than citizens of western Germany. However, the study also shows positive developments: the number of people with low incomes is continuously decreasing over the years. While around 21.1 percent of all full-time employees were classified as low-income in 2011, this figure fell to just 18.7 percent in 2020.
Source: Institute for Economic and Social Sciences (WSI), Hans Böckler Foundation, Federal Statistical Office
By Franziska Klemmer