3.3 percent increase in the minimum wage in Germany

The government-established Minimum Wage Commission in Germany has proposed that the country’s minimum hourly wage be increased to 12.41 euros from next year.

The Minimum Wage Commission, made up of employer and worker representatives by the German government, announced its decision on the minimum wage paid per hour. Consequently, the commission suggested that the salary in question be increased to 12.41 euros per hour from next year. The Commission demanded that the minimum wage be increased to 12.82 euros from January 2025.

“The decision came in a period of weak economic growth and persistently high inflation in Germany, which poses great challenges for both companies and workers,” reads the decision of the Minimum Wage Commission.

Unions are reactive

On the other hand, the Minimum Wage Commission of the German Trade Union Union (DGB) strongly criticized the proposal.

DGB Board Member Stefan Körzell claimed in his statement that a nominal increase of 0.41 euros in the statutory minimum hourly wage would actually mean a “loss of real wages” for approximately six million wage workers. minimum in the country, given the high inflation.

Körzell, who is also a member of the Minimum Wage Commission, stated that with the proposal in question, there will be an increase of only 3.4 percent in the minimum wage paid per hour next year and 3.3 percent in 2025, what should have been removed. he” he said.

Stefan Genth, President of the German Retail Association (HDE), stated that it will be difficult for many companies to cope with a very large and very fast increase in the minimum wage and said: “As a result, companies may close and reduce their size in activities.”

The German government is expected to make the Commission proposal binding with a regulation.

IN 2022 THE TIME HAS ARRIVED

Meanwhile, the legal minimum wage in Germany was first introduced in 2015 as €8.50 per hour.

Raising the country’s minimum wage was one of Prime Minister Olaf Scholz’s most important election promises, and the government had increased the legal minimum wage in the country from €10.45 to €12 in October 2022.

Despite the increase in question, unusually high inflation and the increase in interest rates by the European Central Bank (ECB) to control inflation significantly reduced the purchasing power of Europe’s largest economy. (AA)