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Business-Ticker: The company behind Truth Social reports a $238 million loss
Germany🏛️ PoliticsLean Progressive12 days ago

Business-Ticker: The company behind Truth Social reports a $238 million loss

The German trade union federation DGB has calculated that wage theft related to the minimum wage since 2015 has caused approximately 64 billion euros in economic damage. Of this amount, 35 billion euros were borne by affected workers who did not receive the full minimum wage, while 22 billion euros in losses were attributed to social insurance funds due to insufficient contributions. Additionally, seven billion euros in income tax revenue was lost to the state. The DGB linked these figures to planned cuts in social insurance programs and noted that part of the financial shortfall stems from criminal behavior by employers who fail to meet their legal obligations. These findings are based on data from the 'Sozioökonomisches Panel' long-term survey, which indicates that around two million workers per year have received less than the minimum wage, with an average hourly shortfall of 1.70 to 2.40 euros. The current statutory minimum wage of 13.90 euros is generally non-negotiable, except in specific cases such as internships. Critics highlight illegal methods used to circumvent the minimum wage, including unpaid working hours, deductions for alleged costs, and unrealistic work demands.

German unions estimate that illegal minimum wage violations have cost workers, social insurance funds, and the state up to €64 billion over the past decade, according to calculations released by the German Trade Union Confederation (DGB). These figures stem from analysis of data collected through the Socio-Economic Panel, which surveys approximately 30,000 individuals annually. According to the DGB, nearly two million workers per year have been paid below the legally mandated minimum wage since its introduction in 2015. On average, these workers earned between €1.70 and €2.40 less per hour than required. The current statutory minimum wage in Germany stands at €13.90 per hour and applies primarily to sectors such as hospitality, retail, and agriculture, where around six million employees are estimated to work. However, the DGB claims that many of these workers do not receive the full hourly rate due to underpayment of working hours. Based on their calculations, workers have collectively missed out on approximately €35 billion in wages during the ten-year period from 2015 to 2024. Additionally, social insurance funds lost around €22 billion, and the state forgone €7 billion in income tax revenues. The DGB attributes part of this financial loss to criminal behavior by some employers who fail to meet their legal obligations. They argue that instead of placing the burden of these shortfalls onto workers who struggle daily to make ends meet, efforts should focus on combating wage theft effectively. DGB Vice President Stefan Körzell emphasized that minimum wage violations are not trivial offenses and must be rigorously pursued and punished. Germany’s main employers’ association, the Federation of German Employers’ Associations (BDA), acknowledges that minimum wage violations are unacceptable and must be thoroughly investigated and prosecuted. However, they expressed skepticism regarding the accuracy of the DGB’s figures, suggesting that survey data might be imprecise, especially when working hours are not accurately recorded. The BDA also pointed out that the sharp increase in the minimum wage in 2022 significantly increased economic pressure on many businesses. The Federal Customs Administration’s Office for Combating Undeclared Work (FKS) regularly checks thousands of companies for compliance with the minimum wage law. According to the latest report from the Minimum Wage Commission, nearly 6,200 investigations into suspected violations were initiated in 2024. Of these, 45 percent concerned cases where the minimum wage was not paid or delayed, while 50 percent involved failures to document working hours properly. A total of €25.4 million in fines were imposed in 2024. Despite these enforcement actions, the DGB criticizes the authorities responsible for monitoring compliance as being chronically understaffed. Statistics indicate that each company in Germany is inspected only once every 140 years on average, highlighting a significant gap in oversight. The issue of minimum wage enforcement comes amid broader demographic challenges facing Germany. As of the end of 2025, approximately 8.3 million people aged between 15 and 24 made up 10 percent of the population, marking a historic low. This figure has remained at a record low since the start of the 2020s, with the highest proportion of young people recorded in the early 1980s when the baby boomer generation was still within this age range. The share of young people is higher among those with an immigrant background and varies by region, with Bremen having the highest proportion at 11.1 percent and Brandenburg the lowest at 8.8 percent. Germany’s youth population continues to lag behind the European Union average, standing at 10 percent compared to the EU’s 10.7 percent. With these demographic trends shaping the labor market, the ongoing challenge of enforcing the minimum wage law becomes even more critical.

3 reports

Frankfurter Allgemeine (FAZ) logoFrankfurter Allgemeine (FAZ)Independent🔒CenterFactual 95Objective 9012 days ago
Business-Ticker: The company behind Truth Social reports a $238 million loss

The German trade union federation DGB has calculated that wage theft related to the minimum wage since 2015 has caused approximately 64 billion euros in economic damage. Of this amount, 35 billion euros were borne by affected workers who did not receive the full minimum wage, while 22 billion euros in losses were attributed to social insurance funds due to insufficient contributions. Additionally, seven billion euros in income tax revenue was lost to the state. The DGB linked these figures to planned cuts in social insurance programs and noted that part of the financial shortfall stems from criminal behavior by employers who fail to meet their legal obligations. These findings are based on data from the 'Sozioökonomisches Panel' long-term survey, which indicates that around two million workers per year have received less than the minimum wage, with an average hourly shortfall of 1.70 to 2.40 euros. The current statutory minimum wage of 13.90 euros is generally non-negotiable, except in specific cases such as internships. Critics highlight illegal methods used to circumvent the minimum wage, including unpaid working hours, deductions for alleged costs, and unrealistic work demands.

Bias read (Center): The article presents statistical findings from the DGB regarding economic damage caused by minimum wage violations. It includes quotes from the DGB and references to official data from the 'Sozioökonomisches Panel'. The tone remains neutral, presenting both the DGB's calculations and criticisms of雇主

Why factuality (95): The article accurately reports the DGB's findings regarding economic damage from minimum wage violations, citing specific figures (64 billion euros total, 35 billion to workers, 22 billion to social insurance funds, etc.) and referencing the 'Sozioökonomisches Panel' as the data source. The informat

Why objectivity (90): The article presents the DGB's findings in a largely neutral manner, using factual language and avoiding overtly biased phrasing. It mentions criticism of employers but does not take a clear stance, maintaining a balanced tone overall.

taz – die tageszeitung logotaz – die tageszeitungIndependentProgressiveFactual 85Objective 7013 days ago
EUR 64 billion in damage: employers cheat on the minimum wage

The article reports on calculations by the German trade union federation (DGB) indicating that employers have underpaid workers by up to 64 billion euros since the introduction of the minimum wage in 2015. The DGB claims that two million people were affected annually, with losses distributed between workers, social insurance funds, and the tax authority. The DGB argues that these discrepancies result from illegal practices by employers who fail to meet their legal obligations. In contrast, the Federation of German Employers' Associations (BDA) questions the accuracy of the data, noting potential inaccuracies in survey-based information and emphasizing the need for careful evaluation.

Bias read (Progressive): The article frames the issue as a systemic problem caused by employer misconduct, using strong language like 'Kavaliersdelikt' (reckless act) and emphasizes the need for strict enforcement against employers. It highlights the impact on workers and social systems, aligning with left-wing concerns for

Why factuality (85): The article cites DGB calculations showing potential losses of up to 64 billion euros due to minimum wage violations, aligning with cross-source consensus. It mentions the current minimum wage rate and sectors affected, but does not provide independent verification of the DGB's methodology. The arti

Why objectivity (70): The tone leans toward criticizing employers and highlighting worker exploitation, using terms like 'getrickst' and emphasizing financial loss. While presenting facts neutrally, there is a subtle bias towards supporting workers' rights over employer interests.

Deutsche Welle (English) logoDeutsche Welle (English)State / PublicCenterFactual 80Objective 8513 days ago
Germany news: Low water on Rhine could sever freight route

Germany's population continues to experience a historic decline in the share of young people, with those aged 15 to 24 making up just 10% of the population as of late 2025, a level that has remained unchanged since the early 2020s. This represents a significant drop from the peak of 16.7% in the early 1980s during the baby boom era. Regional disparities exist, with Bremen having the highest proportion of young people at 11.1%, while Brandenburg has the lowest at 8.8%. Germany's youth population share is also slightly below the European Union average of 10.7%. Additionally, the German Trade Union Confederation (DGB) claims that minimum wage violations have cost workers, social security funds, and the state approximately €64 billion over the past decade, with an estimated €35 billion lost in wages alone.

Bias read (Center): The article presents statistical data on demographic trends and economic issues related to labor laws without overtly favoring any particular political stance. It includes information from official sources like the Federal Statistical Office and mentions perspectives from both the DGB and employer's

Why factuality (80): The article accurately reports the DGB's claim of 64 billion euro losses from minimum wage violations, citing the same data as the German newspaper. It provides demographic statistics about youth population in Germany without apparent bias, though it links to a video which may introduce external inf

Why objectivity (85): The article maintains a neutral tone, presenting the DGB's findings without overt criticism or support of either side. It focuses on reporting the data rather than taking a stance, although the inclusion of a video might suggest a slight leaning towards media coverage.

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