Rise in Germany’s Minimum Wage: What You Need to Know – RUHR24Service

2023-07-02 01:25:10
ruhr24Service

Created: 07/01/2023 09:01

By: Regina Wolf

The minimum wage is to rise once more: the minimum wage commission has now agreed on a sum. Six million workers get more salary.

Germany – Employees in Germany are currently not allowed to earn less than 12 euros per hour. From 2024, this statutory minimum wage is to be increased once more. On Monday (June 26) the Minimum Wage Commission named a specific sum.

Euro minimum wage – around six million employees should get more salary

Until the decision was made, the level of the new minimum wage was kept secret, as was the dpa reported. On Monday (June 26), the Minimum Wage Commission made up of employer and employee representatives in Berlin proposed:

The minimum wage is to be raised to 12.41 euros.

Sea dpareport, according to the latest information from the Federal Statistical Office, around six million dependent employees (15 percent) are employed in the low-wage sector. Around 5.8 million people benefited from the minimum wage increase.

The minimum wage will increase to 12.41 euros on January 1, 2024. (symbol photo) © Zoonar/Stock Photos/Imago

More minimum wage – increases planned for 2024 and 2025

Federal Labor Minister Hubertus Heil (SPD) had already announced the minimum wage increase. The new regulation is planned for 2024.

As early as April, the minister said picture on Sundayg: “Work must be worthwhile. That’s why there will be another minimum wage increase next January.”

On January 1, 2025 there will be another increase. Then the minimum wage should rise to 12.82 according to the Commission’s proposal.

Dispute over minimum wage: employee representatives demand 14 euros

According to the Minimum Wage Commission report, the decision was not unanimous. The workers’ representatives on the Commission complain that the increase is too small.

In a corresponding statement, it is said that, according to the union representatives, “the minimum wage should have increased significantly, at least to 13.50 euros.” The employers and the chairwoman of the commission refused to do so.

They are also demanding that the EU minimum wage directive be implemented in national law by the end of 2024 at the latest. Accordingly, the minimum wages in the European Union should reach at least 60 percent of the median wage for full-time employees. This would correspond to a minimum wage of at least 14 euros.

More salary in the low-wage sector – the minimum wage was already increased in 2022

The statutory minimum wage had already been increased several times in 2022. Most recently, on October 1, 2022, it rose from EUR 10.45 to EUR 12.

Important to know for employees: The minimum wage is a gross wage. How much of this remains net depends on factors such as the respective tax class, the number of children, etc. (Finanz-News on RUHR24).

According to the Federal Ministry of Labour, the general statutory minimum wage is intended to protect employees from unreasonably low wages. The declared goal is that everyone who works full-time can also “make a decent living from it”.

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