Minimum wages should rise to 10.45 euros

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The legal minimum wage in Germany is to increase in four stages by July 1, 2022, from currently 9.35 euros to 10.45 euros. The competent minimum wage commission recommends this in a resolution presented in Berlin on Tuesday.
The vote on the committee, which includes representatives from trade unions, employers and academia, was unanimous. The federal government still has to implement the future minimum wage by ordinance. It is usually based on the Commission’s proposal.

The proposal provides the following roadmap for the increases:

  • The minimum wage increases January 1, 2021 on 9.50 euros.

  • To the July 1, 2021 is supposed to raise a second 9.60 euros consequences,

  • at the January 1, 2022 comes a third step 9.82 euros.

  • The fourth stage looks to July 1, 2022 an increase on 10.45 euros in front.

The statutory minimum wage was introduced on January 1, 2015 with an amount of initially EUR 8.50 gross per hour. Most recently, there had been an increase in two stages: to EUR 9.19 as of January 1, 2019 and to the current EUR 9.35 as of January 1, 2020.

After several boom years, the minimum wage recommendation was also eagerly awaited in view of the economic slump due to the corona pandemic. Employers had warned against excessive increases in the face of the burdens of many companies during the crisis. The unions, however, called for a noticeable increase.
Basically, the independent commission made up of representatives of employers, unions and academia is based on the past development of wages. According to legal stipulations, the “total consideration” should then bring together the minimum protection of employees, fair conditions of competition and the major goal of not endangering employment. There is a certain amount of leeway in what exactly is included in the calculation.
The statutory minimum wage applies to all adult workers – except for the long-term unemployed who started work in the first six months. It also does not apply to trainees, people with mandatory internships or internships of less than three months. In addition, there are minimum wages in several industries that are above the lower wage limit.

Editor’s note: An earlier version of the text said the grand coalition had decided to raise the minimum wage. In fact, it is a recommendation of the minimum wage commission that the federal government generally follows
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https://www.spiegel.de/wirtschaft/soziales/mindestlohn-steigt-auf-10-45-euro-a-f3babd59-fdd3-4897-8584-d697b3802894

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