The German government adopted a bill on Wednesday to raise the minimum hourly wage to 12 euros gross by October, a flagship measure promised by the Social Democratic Chancellor (SPD) Olaf Scholz which will benefit more than 10% of the assets.
This measure will improve the remuneration of nearly 6.2 million employees out of a total of 41.5 million and an active population of 45.2 million people, with the self-employed and liberal professions at the end of 2021.
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Concretely, the project provides for an increase in the German hourly
minimum wage
in two stages, from 9.82 to 10.45 euros on July 1 and then to 12 euros on October 1.
The change will particularly benefit employees in
the "East of the country
" in the Länder of the former GDR, "
women
" and in general "
those who kept the country running during the pandemic
", commented Hubertus Heil, Social Democratic Minister of Labour, in a press release.
Boost purchasing power
The increase in the minimum wage is included in the coalition contract concluded between the SPD, the Greens and the Liberals of the FDP following the September elections.
This measure will boost the overall purchasing power of 4.8 billion euros in the largest European economy, according to the German Confederation of Trade Unions (DGB).
The text also raises the ceiling on the remuneration of “
mini-jobs
”, jobs performed alongside a main position, from 450 to 520 euros, an aspect criticized by the unions.
This extension of the ceiling for mini-jobs "
is fatal
" because it will reinforce precarious work, denounces Christiane Benner, vice-president of the powerful metallurgy union IG Metall.
The increase in the minimum wage could also fuel inflation, which has already reached a record high of around 5% in the country at the end of 2021. "
This will probably have a noticeable effect on food prices
", estimated Wednesday the president of the Chamber of Farmers, Joachim Rukwied, in the regional daily “
Rheinische Post
”.
