Shocking wages in Saxony-Anhalt: One in three is fighting for survival!

Shocking wages in Saxony-Anhalt: One in three is fighting for survival!

Saxony-Anhalt is one of the federal states with the lowest wages in Germany. Around a third of full-time employees in the state earn less than 2,750 euros gross per month. This alarming situation is supported by current data from the federal government, which was released in response to a request from Left MP Dietmar Bartsch. Accordingly, the earnings limit, even on a national average, is below 2,750 euros for 20.9 percent of employees. In addition, almost 60 percent of full-time employees in Saxony-Anhalt earn less than 3,500 euros gross, which indicates a widespread wage problem.

In total, around half a million people work full-time in Saxony-Anhalt. Bartsch draws attention to the consequences of low wages: Earnings below 3,500 euros could lead to poverty-level pensions. In order to receive a statutory pension that is not below the poverty risk threshold, a gross monthly wage of more than 3,300 euros is required. This increases the discussion about the need for wage increases and social policy reforms.

Effects of the minimum wage

From January 1, 2026, an increase in the minimum wage from 12.82 euros to 13.90 euros per hour is planned. According to estimates, around 164,000 of a total of 832,000 employees subject to social security contributions in Saxony-Anhalt will benefit from this. This corresponds to an impact of around 20 percent. In contrast to the previous increases, it can be seen that the minimum wage increase has a more significant impact, especially in eastern Germany (excluding Berlin), with an impact of 20 percent, while the national average is 17 percent.

With the last increase in October 2022 to 12 euros, 19 percent of employees in Saxony-Anhalt already benefited. The increase in the minimum wage could affect around 6.6 million jobs across Germany, with around 2.5 percent of the jobs in Saxony-Anhalt being included in these figures. This would increase the wage bill from 218 million euros to 231 million euros without a minimum wage increase.

Gender distribution and corporate structure

What is also striking is the difference in how men and women are affected in Saxony-Anhalt: 21 percent of women, but only 18 percent of men, benefit from the minimum wage. The effects by type of employment show that 10 percent of full-time, 24 percent of part-time and 67 percent of marginally paid employees are affected by the increase. In companies not bound by collective agreements, 30 percent of jobs are affected, while in companies subject to collective agreements it is only 10 percent.

The adjustment rate also varies between the different economic sectors. The increase affects 21 percent of employees in the service sector, while only 14 percent in the manufacturing sector are affected. It could also be estimated that the upcoming increase in the minimum wage to 14.60 euros in January 2027 will affect 26 percent of jobs.

The current discussion about wages and minimum wages illustrates the need for fundamental change in the German labor market in order to ensure social justice and adequate pension provision. While the current situation in Saxony-Anhalt is worrying, the upcoming minimum wage increase could mitigate at least part of the negative development.

For further details on the wage situation in Saxony-Anhalt, the following links can be visited: Süddeutsche Zeitung reports that... and Statistics Saxony-Anhalt provides information about....