Germany to raise minimum hourly wage to €12 – EURACTIV.com

Germany’s general minimum wage will be raised to 12 euros an hour, the cabinet decided on Wednesday, fulfilling a key election promise from Social Democrat Chancellor Olaf Scholz.

According to the bill passed by the government, the increased rate would come into effect on October 1 this year. For the law to be definitively adopted, Parliament still has to give its approval.

“Raising the minimum wage is my most important law,” Scholz said on the summer 2021 campaign trail, promising to “get this off the ground immediately” once elected. Government parties have now hailed the law’s approval as a promise kept.

About 6.2 million employees will benefit from higher salaries under the law, while the increase will disproportionately benefit women, Scholz pointed out on the ZDF television channel on Wednesday.

However, the news is not to everyone’s liking.

Employers’ organizations have criticized the decision of governments to interfere in setting the level of the minimum wage as a violation of free collective bargaining.

Since its introduction in 2015, the wage floor has been determined by a commission of employers’ and employees’ organisations, which traditionally play an important role in Germany. However, Scholz and Employment Minister Hubertus Heil promised that government intervention would be a one-off measure.

The increase would put Germany among the EU countries with the highest minimum wage in nominal terms, although it would still be dominated by Luxembourg, Ireland, the Netherlands and Belgium, according to the report. national institute of statistics.

(Julia Dahm | EURACTIV.de)

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