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Minimum wage: Federal government decides to raise it to 10.45 euros

2020-10-28T11:42:04.701Z


The statutory minimum wage in Germany will rise above ten euros for the first time by summer 2022. Labor Minister Hubertus Heil still sees "clear room for improvement".


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In many places in the catering industry, minimum wages are paid

Photo: Sebastian Kahnert / DPA

Decent collectively agreed wages are rare in many areas, and often only the statutory minimum wage is paid.

But it should now increase sharply - in four steps by mid-2022 to 10.45 euros per hour.

The Federal Government passed a corresponding ordinance from Labor Minister Hubertus Heil.

The SPD politician said the adjustment was based on the development of the tariff, but also took into account the economic uncertainties of the corona pandemic.

"But in perspective I can still clearly see room for improvement."

The minimum wage is expected to increase from currently 9.35 euros from January 1, 2021 to 15 cents to 9.50 euros.

Half a year later, there is another increase of 10 cents to 9.60 euros, another six months later an additional 22 cents to 9.82 euros.

In the summer of 2022, it should then rise by 63 cents to 10.45 euros.

In total, this brings employees an additional 1.3 billion euros.

According to the ordinance, the minimum wage will rise by 5.26 percent over the entire two-year period, which is slightly more than the collectively agreed wages.

EU Commission presents plan for European minimum wages

With the cabinet decision, the recommendation of the minimum wage commission made up of employers and unions from the end of June will be implemented.

The increases in 2021 will lag behind the development of collectively agreed wages due to the consequences of the corona pandemic.

This is to take account of the "economic uncertainties" caused by the crisis.

In 2022, the increases will be stronger.

"The four-stage increase helps to distribute the resulting wage cost increases for the company and at the same time to constantly improve the minimum protection of employees over the next two years," said Heil.

The Minister of Labor affirmed that he would make proposals "to further develop the minimum wage law so that the minimum wage can continue to rise quickly".

At noon, the EU Commission wants to present plans for minimum wages in Europe.

A framework for lower wages is planned, which is based on local income in the EU countries.

Commission President Ursula von der Leyen had promised that all workers in the European Union should receive fair minimum wages with which they can live adequately where they live.

According to the Commission, every sixth worker in the EU is considered a low wage earner, the majority of whom are women.

The Commission emphasizes that this is not about uniform minimum wages in all EU countries and that existing systems, traditions and national characteristics should be taken into account.

Nevertheless, some EU countries were skeptical.

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apr / Reuters / AFP / dpa

Source: spiegel

All business articles on 2020-10-28

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