Labor market: Green light for minimum wage increase on October 1st

labour market
Green light for October 1 minimum wage increase

Course set: The Social Affairs Committee of the Bundestag has given the green light to increase the minimum wage to 12 euros per hour on October 1st. Photo: Fernando Gutierrez-Juarez/dpa-Zentralbild/dpa

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There should be more money for employees – at least 12 euros an hour. A corresponding draft law has been launched.

The Social Affairs Committee of the Bundestag has given the green light to increase the minimum wage to 12 euros per hour on October 1st. The draft law by Federal Labor Minister Hubertus Heil (SPD) was passed on Wednesday, as the German Press Agency learned from participants.

With the increase, the coalition also wants to raise the limit for mini-jobs from 450 to 520 euros. From October 1st, monthly earnings up to the new limit for employees are to remain tax and social security-free.

SPD parliamentary group leader Dagmar Schmidt told the German Press Agency: “The decision in the committee has clearly set the course. 12 euros minimum wage is a big step.” The coalition has launched relief packages and crisis measures to help people in the face of current price increases, she said. “But at the same time it is important to stabilize incomes in principle, because that is the basis for all employees.”

sign of more justice

The deputy chairman of the Greens parliamentary group, Andreas Audretsch, told the dpa: “This is a wage increase for over six million people and also in view of rising prices more important and urgent than ever.” Women and people in East Germany in particular would benefit from the increase in the minimum wage. “So today’s decision is also a strong sign of more justice in Germany,” said Audretsch.

It was initially unclear when the draft law would be put on the agenda of the plenum for final deliberation. But it should be done soon, it said on Wednesday from all three traffic light groups. Audretsch said: “We will now tackle the adoption in the Bundestag quickly.”

dpa

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