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The German government adopted a bill on Wednesday providing for the increase of the minimum wage to 12 euros per hour in October. Six million employees are affected by one of the key measures announced by the new Chancellor.
Throughout his campaign, Olaf Scholz had promised to quickly raise the minimum wage to 12 euros instead of 9.82 euros at present, recalls our correspondent in Berlin, Nathalie Versionux. On Wednesday, Labor Minister Hubertus Heil assured that the increase in the hourly minimum will be done in two stages: 10.45 euros on July 1 and 12 euros on October 1.
Ten percent of German employees, i.e. more than 6 million people, are affected, in particular “ women, the inhabitants of the former GDR, and generally those who kept the country going during the pandemic “, underlines the minister.
Inflation risk
The unions estimate that the measure will boost purchasing power by nearly 5 billion additional euros. But raising the minimum wage might also fuel theinflation which has already reached a record in the country around 5% at the end of 2021. “ This will likely have a noticeable effect on food prices “, estimates the president of the chamber of farmers,
For a long time, Germany was an exception in Europe, with the belated establishment of a first minimum salary imposed in 2014 on former Chancellor Angela Merkel by her Social Democratic coalition partner.
