The statutory minimum wage in Germany is to increase in four stages by July 1, 2022 from the current EUR 9.35 to EUR 10.45. This is recommended by the responsible commission in a decision 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.
Specifically, according to the recommendation, the minimum wage should initially rise to EUR 9.50 by January 1, 2021. A second increase to EUR 9.60 is to follow on July 1, 2021, and a third to EUR 9.82 on January 1, 2022. The fourth stage provides for an increase to EUR 10.45 on July 1, 2022.
Minimum wage recommendation was eagerly awaited due to the corona crisis
The statutory minimum wage was introduced on January 1, 2015 with a gross amount of EUR 8.50 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 with a view to 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 the legal stipulations, the “total consideration” should then bring together the minimum protection of employees, fair competitive conditions and the big 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.