Federal Labor Minister Hubertus Heil has announced a “significant” increase in the minimum wage for the coming year. A corresponding proposal from the permanent independent minimum wage commission is expected for the summer.
“Work must be worth it. That’s why there will be another minimum wage increase next January,” said Federal Labor Minister Huberts Heil to “Bild am Sonntag”. “I expect a significant increase.” And that in the coming year. The minister referred to high inflation and wage increases, which would be reflected in setting the minimum wage.
Minimum wage: proposal for adjustment every two years
The permanent independent Minimum Wage Commission submits a proposal to the government to adjust the minimum wage every two years. The next proposal is expected in the summer. Most recently, the minimum wage was increased from 10.45 euros to 12 euros per hour on October 1st. The government had decided on this one-time step and not the commission set up specifically for this purpose.
A draft of the Collective Bargaining Act should be available by June
Heil also announced that he would present a draft of the law on collective bargaining agreed in the coalition agreement by June. If the federal government commissions construction work, awards cleaning jobs or organizes an event, then the orders should only be awarded to companies that comply with the collective agreement.
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“The federal contractors must grant their employees all the regulations of the industry collective agreement – from wage levels to bonuses and vacation to Christmas bonuses,” said Heil. “If we as a state spend tax money, then entrepreneurs who don’t pay their people properly should no longer be allowed to benefit from it.” The aim is for the law to come into force on January 1, 2024.
Source: Stern
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