Niedriglohn

Niedriglohn is a German term for earnings that are low relative to typical wages in the economy. In everyday usage it refers to workers employed in the Niedriglohnbereich or in the low-wage sector, where earnings are insufficient to cover standard living costs without additional support. The concept is used in labor market analysis to describe a wage distribution with a concentration at the lower end.

In policy discussions, Niedriglohn is linked to measures aimed at improving wage floors and living standards. Germany introduced a nationwide statutory minimum wage in 2015 to curtail Niedriglohn. Since 2022 the minimum wage stands at 12 euros per hour, and wage-setting through collective agreements and sector rules remains important for many workers in low-wage jobs.

Low-wage jobs are concentrated in service sectors such as hospitality, retail, cleaning, and personal care. They are also more common among part-time workers, younger employees, women, and migrants. Regional variations exist, with some areas exhibiting a higher share of Niedriglohn jobs, reflecting different industry structures and local demand.

The presence of Niedriglohn affects poverty risk, consumption, and social inclusion. The minimum wage and social policies aim to lift earnings without severely reducing employment. Empirical studies offer mixed results on employment effects, while they generally show improved income for many low-wage workers. The term remains a focal point in debates about wage policy, living costs, and labor market flexibility.