Minimum wage: increase is coming - when there will be more money, which sectors will benefit the most
Created: 01/27/2022, 10:01 am
By: Patricia Huber
Retail workers in particular are likely to benefit from the minimum wage increase.
© Tobias Hase/dpa
The minimum wage is set to rise twice this year.
But what are the effects of this statutory wage increase and where does the increase have the greatest impact?
An overview.
Berlin - In their coalition agreement, the traffic light parties have set a minimum wage increase.
From October, the minimum should then be twelve euros per hour.
6.2 million employees should benefit from this, according to the draft bill by Federal Labor Minister Hubertus Heil (SPD*).
The lower wage limit is currently €9.82 per hour.
On July 1st there is already a regular increase to 10.45 euros.
Minimum wage: who will benefit most from the increase?
Now the question arises as to what impact this relatively large increase will have.
Women and employees in eastern Germany in particular should benefit from the increase, Mario Bossler told the
Handelsblatt
.
He heads the minimum wage working group at the Institute for Labor Market and Vocational Research (IAB).
Employees can look forward to more money, especially in the hospitality industry, retail trade, logistics, agriculture and body-related services.
But beware: For mini-jobbers, the new minimum wage does not mean more money in the account.
The 450 euro limit still applies to part-time employees.
Those affected would then have to reduce their hours in order not to exceed the limit.
For whom the minimum wage does not apply:
Adolescents under the age of 18 who have not completed vocational training
Apprentices as part of vocational training (regardless of age)
Long-term unemployed during the first six months of employment after the end of unemployment
Interns if the internship takes place as part of (university) school education or lasts a maximum of three months and is used for career or study orientation
People who work in a job that serves as an introductory qualification in preparation for vocational training
Volunteers.
Minimum wage: Does the introduction threaten layoffs?
Conversely, higher wages for employees also mean higher costs for employers.
As a result, many fear that raising the statutory minimum wage could also result in layoffs.
But experts see no problem here.
After all, employees are desperately needed in most areas.
Even if someone loses their job, they should be able to find a new one quickly, Bossler explains.
Wage-price spiral: does the new minimum wage make everything more expensive?
Some consumers fear that the increase in the minimum wage will also lead to higher prices for products and services, triggering a wage-price spiral.
In view of the currently very high inflation rate of 5.3 percent, this could become a financial problem for one or the other.
Experts agree that there is always a risk of a wage-price spiral.
Economist Sebastian Link from the Ifo Institute expects that the minimum wage increase will have an impact on prices very quickly.
But this could be compensated for again in autumn, for example if energy costs fall.
(ph)
