Economic research reveals that individuals earning 1400 euros or less are classified as impoverished within our nation
In our country, many full-time workers are still struggling to meet their basic needs, despite working long hours. According to recent statistics, about one in five employees earns less than the low-wage threshold, which stands at 1,390 euros per month for a single person in 2022. For single parents with a child under 14, the poverty risk threshold is 1,800 euros per month, and for couples with two children, it is 2,910 euros net per month.
Particularly affected are people in care professions, retail, and gastronomy, where many earn too little to build savings or cover unexpected expenses. The silence about money contributes to persisting social inequalities in our country, as the topic affects a wide range of individuals, from those with high incomes to those struggling with financial shortages.
Higher raw material prices are being passed on to consumers, with prices of staple foods such as flour, potatoes, cooking fats, and oils increasing by about 50% since the beginning of 2020. Poultry meat has increased by around 40%, well above the average. These rising costs, combined with increasing rents, especially in major cities, add to the financial burden for many.
The income distribution in our country is much more unequal than often assumed, and many freelancers and self-employed people have insecure incomes. The average gross annual income in the country is currently 52,159 euros, or approximately 4,346 euros per month. Despite the decrease in inflation, financial pressure remains high for many individuals.
The Institute of the German Economy (IW) has defined income limits below which people are considered at risk of poverty. These limits vary by household type, with single parents with a child under 14 facing higher poverty risks compared to couples. Income thresholds for benefit eligibility (such as the Canada Child Benefit) give partial insight into income levels tied to poverty risk.
For precise 2022 thresholds, consult resources like Statistics Canada’s Low Income Lines or Market Basket Measure data. It is crucial to continue the conversation around financial struggles and poverty risk in our country to ensure that everyone has the opportunity to thrive financially.
- Due to rising costs of foodstuffs like flour, potatoes, and cooking fats, as well as increased prices for other essential items, many individuals find it challenging to cover their expenses, particularly those working in care professions, retail, and gastronomy whose personal-finance situation is already precarious.
- The Institute of the German Economy suggests that even with decreasing inflation, personal-finance pressure remains high for many individuals, given the unequal income distribution in our country and the higher poverty risks faced by single parents with a child under 14 compared to couples.
