DGB estimates damage from minimum wage fraud at 64 billion euros

The German Trade Union Confederation (DGB) has calculated that since the introduction of the legal minimum wage in 2015, economic damage totaling approximately 64 billion euros has arisen from minimum wage fraud. This amount impacts both employees and social security funds as well as the state.

According to the DGB, illegal actions by employers are responsible for the undermining of wages, which are often not properly paid despite the current legal minimum wage of 13.90 euros. The union has documented various examples of schemes that circumvent adherence to the minimum wage.

Estimates from the DGB indicate that employees have significantly lost out on earnings due to such practices. Additionally, social security funds have suffered billions in losses, which would further burden public finances.

Despite these claims, some employers question the DGB's calculations and point out that the number of minimum wage fraud cases may be overstated. However, this discussion is vehemently rejected by the unions, which advocate for stricter enforcement.