The statutory minimum wage will first increase by 41 cents, as recommended by the Minimum Wage Commission. Social organizations had called for an increase of 14 euros. As a result, the unions voted against the idea.
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| Minimum Wage in Germany |
On January 1, 2024, the general statutory minimum wage in Germany will increase from 12 to 12.41 euros, and then to 12.82 euros the following year. The knowledgeable minimum wage commission proposed this.
But this time, there was no agreement on the suggestion. According to their own remarks, the employee representatives in the Commission voted against the rise because they felt it was insufficient.
Members of the group include experts from business, labor, and science. The Commission submits a proposal on the minimum wage's future level every two years.
The minimum wage is adjusted based on advances in collective bargaining and the state of the economy. The objective is to provide workers with a minimal degree of protection without endangering jobs. Since 2015, when it was set at EUR 8.50, a lower pay ceiling has been required by law.
Hubertus Heil, the federal minister of labor, declared his intention to carry with the Minimum Wage Commission's ruling. "I know that the employees and the unions would have definitely wished for a higher minimum wage," said Heil. But he brought up the minimum wage regulation. The federal government only has two options, one of which is to implement the Commission's suggestion. The alternative, which is "irresponsible in light of the inflation trend," would be to not raise the minimum wage as of January 1.
Prior to this judgment, the Commission had claimed that it came "at a time of weak economic growth and persistently high inflation in Germany, which poses great challenges for both employers and employees."
The German Trade Union Confederation (DGB) declared that the Minimum Wage Commission had rejected the unions' votes in an utterly unacceptable manner. The minimum wage commission member and board member Stefan Körzell stated: "We could not lend a hand for an adjustment that was only in the cent range."
The ruling resulted in a significant loss of actual pay for the almost six million minimum-wage workers. "The minimum salary should have increased to at least 13.50 euros to offer minimal protection and account for inflation. Employers and the commission's chairperson have declined.
At a press conference in Berlin, Christiane Schönefeld, the chairperson of the minimum wage committee, stated that the viewpoints were extremely diametrically opposed. The discussions continued into the wee hours of the morning.
The minimum wage was last increased by the traffic light coalition of the SPD, Greens, and FDP, which passed a bill on October 1, 2022, raising it from 10.45 euros to 12 euros. During the 2021 federal election campaign, the SPD in particular ran a campaign in support of this. As per normal, the Commission's recommendation should now lead to the implementation of the current increase step.