One million Lower Saxons earn up to 14 euros
According to the Food, Beverages and Catering Union (NGG), around one million people in Lower Saxony work for an hourly wage of less than 14 euros. This is the result of a study presented on Wednesday by the Pestel Institute in Hanover on behalf of the union. According to the study, 94,000 people in the state of Bremen work for an hourly wage of less than 14 euros. The NGG is currently holding its trade union conference in Bremen.
According to the NGG, hourly wages below 14 euros are a burden on the state. "Today, the state has to financially support the majority of people whose wages do not exceed the 14 euro mark, even though they are working," said NGG Chairman Guido Zeitler. The federal and state governments are supporting recipients with around five billion euros in housing benefit alone this year. According to the study, around ten million people across Germany work for an hourly wage of up to 14 euros.
The study states that if wages were to rise to 14 euros nationwide, the social security system would receive an additional ten billion euros. Income tax would increase by around two billion euros. This is said to be a conservative estimate.
The NGG reiterated its demand for a law to ensure that public contracts are paid in accordance with collective agreements. Federal Finance Minister Christian Lindner and his FDP party should no longer block such a law, according to the NGG.
In the hospitality industry, where many workers rely on low hourly wages, the NGG advocates for increased pay. Trade unions like the NGG argue that the current situation, with over ten million people nationwide earning less than 14 euros per hour, places a significant financial burden on the state and necessitates supplementary income support, such as housing benefit.
Source: www.dpa.com
