The minimum wage in Germany increases by a total of 82 cents. The Federal Cabinet approved a recommendation from the responsible commission. Critics believe the increase is too low.
The statutory minimum wage will rise in two steps by 82 cents to 12.82 euros. On January 1st, the lower wage limit will be raised to 12.41 euros gross per hour and a year later to 12.82 euros. A corresponding regulation from Federal Labor Minister Hubertus Heil (SPD) passed the cabinet on Wednesday, as the ministry announced. The increase corresponds to an increase of 6.8 percent.
The Federal Council’s approval of the regulation is not required; it should come into force at the beginning of the year. Raising the minimum wage is not keeping pace with inflation. Recently, the inflation rate in Germany has fallen again to 3.8 percent.
Employee representatives outvoted
The decision is based on a recommendation from the Minimum Wage Commission of Employers and Employees in June. The recommendation was not made by consensus. The employee representatives consider the increase to be too low, but were outvoted.
There is also dissatisfaction in the coalition with the increase due to the commission. The increase is far too small and the commission’s decision is “nothing more than a bad joke,” said Green Party deputy leader Andreas Audretsch to the German Press Agency. The people who worked hard in difficult jobs for low wages would have earned significantly more. The Minimum Wage Commission terminated the consensus to decide amicably.
Chancellor Olaf Scholz (SPD) had also called for the minimum wage commission to make decisions by consensus again in the future. There are many people who are not doing well financially despite a lot of work, Scholz said in October. Audretsch called for a permanent minimum wage of at least 60 percent of the median wage. “That would be well over 14 euros in 2024.”
Source: Stern
