Average income in Germany. Work in Germany. Many students and retirees in Germany have a monthly income that is much lower than the national average. If someone earns less than a certain amount, they are seen as ‘poor‘. While there is no extreme poverty in Germany, many people struggle to take part in daily life or handle sudden expenses. So, what income level makes someone ‘poor’ in Germany?
Average income in Germany
According to the Federal Statistical Office in Germany, a person is considered “at risk of poverty” if they earn less than 60% of the median income. In 2021, based on the EU definition, this meant a net income of around €15,000 per year for a single person, which is approximately €1,250 per month, as reported by RUHR24. Anyone earning below this threshold is seen as being at risk of poverty. This situation affects about 14.7% of the German population, particularly pensioners and those aged 65 and over.
Net income and standard living
The rise in poverty risk among older people can be linked to several factors. One key reason is that many seniors rely solely on pensions, which are often quite low. A net income of less than €1,250 is often insufficient to maintain a decent standard of living, especially with the rising cost of living.
Read also: What income means happiness? Study finds surprising threshold for Germans.
The EU-SILC study also highlights that poverty risk is affected by gender. Women face a higher risk of poverty than men across all age groups. The poverty risk rate is 13.9% for men and 15.4% for women, with the gap widening in older age. Among those aged 65 and over, 20.3% of women struggle with poverty, compared to 15.9% of men. For women aged 75 and older, the rate increases to 20.6%, while for men, it stands at 14.2%.
Poverty Risk in Germany: Low Incomes Impacting Millions
The poverty risk indicator reveals that many people in Germany have incomes that are too low. While this isn’t the same as absolute poverty seen in developing countries, relative poverty still greatly affects people’s standard of living.