When German Chancellor Friedrich Merz recently addressed the Bundestag, he used his characteristically direct style to highlight what he described as one of the government’s top priorities: reforming Bürgergeld (citizens’ income). He emphasized a phrase often used by conservatives: work must be worth it. Merz stated that he wants to restore citizens’ belief that employment should be fairly rewarded.
Bürgergeld, introduced by the previous government, has faced ongoing criticism from the CDU/CSU. In 2024, approximately 826,000 employees relied on this social assistance — 30,000 more than in 2023 — marking the first increase since 2015, the year Germany received over one million Syrian refugees. Coincidentally, that was also the year the country introduced its first minimum wage. At the time, more than one million workers were dependent on state support. In 2024, such benefits cost the state nearly €7 billion, significantly more than the €5.7 billion spent in 2022.
These figures were published by the government in response to a request by Left Party MP Cem Ince, who told DW: “It is unacceptable that hundreds of thousands rely on social support despite being employed. It means we are subsidizing low wages with taxpayers’ money.”
Rising the Minimum Wage
Ince believes the minimum wage in Germany is simply too low. Despite a recent increase to €12.82, he argues it remains insufficient. Last week, the national Minimum Wage Commission — consisting of representatives from employer associations and labor unions — announced that wages would increase in two phases: to €13.90 in January 2026 and to €14.60 a year later. The SPD had proposed raising it to €15, but that proposal was rejected.
Helena Steinhaus, founder of the campaign group Sanktionsfrei (Sanction-Free), which supports people receiving welfare, said these small increases do not match the rise in prices and rents in recent years. For example, the average rent for an apartment in Germany rose by 4.7% last year, and in Berlin by 8.5%.
The Problem of Part-Time Work
However, some economists argue that the minimum wage has little to do with the number of working people who need social support. “We must highlight that most of these people don’t work full-time. Many are in training or part-time jobs,” said Holger Schäfer, an economist at the German Economic Institute (IW) in Cologne.
“The minimum hourly wage isn’t the issue here. The real reason they can’t make ends meet is the low number of working hours.”
Official figures support this: of the 826,000 workers receiving Bürgergeld, only around 81,000 work full-time.
Labor Minister Bärbel Bass recently warned of growing welfare fraud involving short-hour work. Middlemen have been recruiting workers from poorer EU countries — particularly Romania and Bulgaria — offering them part-time, minimum wage jobs while simultaneously helping them claim state benefits to meet the basic cost of living. Although EU citizens can’t simply move to Germany and receive benefits, these workers are registered as employed, which qualifies them.
Still, Ince insists this cannot justify poor wages: “The fact is: the current minimum wage is a poverty wage.”
A Rising Tide of Working Poverty
Steinhaus also noted that many people work part-time because they care for children or relatives. According to IW calculations, around 306,000 children under the age of three in Germany lack access to childcare, despite having a legal right to it.
A 2021 study by the Institute for Employment Research (IAB) showed that the more children a worker has, the more likely they are to require state support. Ince argues that greater investment in kindergartens would help many escape the trap of part-time employment.
Business groups and agricultural representatives have warned that higher minimum wages could strain seasonal jobs. But Steinhaus dismisses this argument: “Employer associations have been saying this for over a decade, but it’s never actually proven true,” she said. “Some businesses might struggle, but many profit from paying people less.”
Chancellor’s Welfare Reform Agenda
Economist Schäfer believes the recent rise in working-poor figures is relatively small and part of a broader downward trend since 2015. He attributes the uptick more to current labor market conditions than to systemic failure.
Meanwhile, Chancellor Merz seems determined to push forward with welfare reforms that encourage more people to take full-time jobs. But critics argue his approach — focusing on cutting benefits rather than raising wages — is misguided.
“Unfortunately, Merz’s arguments about work are wrong,” Steinhaus said. “When he says ‘work must pay,’ he’s really talking about cutting benefits. But a living wage doesn’t depend on what low-paid workers earn. They simply need to earn more. Reducing benefits alone is counterproductive — it pits the poorest against each other.”
As Germany struggles to balance labor market needs with social justice, the growing number of working people living in poverty is sending a clear message: a job is no longer a guarantee for a decent life.
