Minimum wage: Customs uncovers thousands of violations - Germany's €13.90 minimum wage hike fails to curb rampant underpayment

Germany's minimum wage rose to €13.90 per hour on 1 January 2025, benefiting around 4.8 million workers. Yet despite the increase, concerns remain over widespread non-compliance. Critics argue that current enforcement is failing to protect up to 2.5 million employees who may still be underpaid.

Inspections in 2025 uncovered 6,121 suspected breaches of the Minimum Wage Act after 25,765 checks. On average, one in four inspections revealed a violation. The most common offences included unrecorded working hours, unpaid overtime demands, and misclassifying staff as self-employed contractors.

The hospitality and hotel sector accounted for nearly 2,500 cases, while freight transport, construction, and hair and beauty salons each saw over 500 violations. Cem Ince of the Left Party has criticised the existing system as insufficient. He is calling for a major expansion of inspections and better staffing for the Financial Control of Undeclared Work.

Although the minimum wage has steadily increased—reaching €12 in October 2022 and now €13.90—specific enforcement actions in high-risk sectors like gastronomy, transport, and crafts remain unclear. No detailed measures from the past five years have been reported to address compliance gaps.

With thousands of employers flouting the rules, the scale of underpayment remains significant. The latest figures suggest that stronger oversight and resources are needed to ensure workers receive the legal wage. Without further action, enforcement gaps could persist, leaving many employees vulnerable to exploitation.