Trade union study shows working full-time pays off in Germany
27.10.2026
Full-time employees in Germany earning the minimum wage have more disposable income than people receiving state-provided income support, according to a study published on Tuesday by a foundation linked to the country's trade unions.
The Institute of Economic and Social Research (WSI), which is affiliated to the Hans Böckler Foundation, noted that the minimum wage had increased, so that the income gap compared with 2025 had become even larger.
Basic income support rates had not increased, the WSI said.
WSI director Bettina Kohlrausch said that the income debate last year had been a striking example of how social policy debates should not be conducted. "Prejudice often carried more weight than facts," Kohlrausch said.
The new basic income support system for jobseekers replaced the previous Bürgergeld (unemployment benefit) in July. The unemployed who fail to cooperate with attempts to find them a job face reductions in their benefits.
The study examines three scenarios: a single person; a single parent with a 5-year-old child; and a married couple with two children aged 5 and 14, with one partner working full-time.
In all three cases, the people examined had more money available when working full-time for the minimum wage than when receiving basic income support. The calculations assume a working week of 38.19 hours.
According to the study, a single parent with a 5-year-old child working full-time for the minimum wage has an average of €757 ($844) more available per month than when receiving state support. The calculations take child allowances into account.
Similar differences were found for the other scenarios, although regional differences were noted, primarily because of variations in rent.
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