The statutory minimum wage in Germany is set to increase by 41 cents to 12.41 euros per hour at the beginning of 2024. This was suggested on Monday by the Minimum Wage Commission made up of representatives of employers and trade unions. In a further step, the lower wage limit is to be raised to EUR 12.82 on January 1, 2025. The amount was negotiated confidentially until the very end. Social organizations had demanded a sharp increase to 14 euros and more, employers warned of “unrealistic heights”.
The last increase so far was in October 2022, when the minimum wage was exceptionally increased by law from 10.45 euros to 12 euros by the federal government. The SPD in particular had campaigned for this in the last federal election campaign. Otherwise, the Minimum Wage Commission is responsible. In it, three high-ranking employer and trade union representatives, two scientists and one chairperson discuss every two years an increase in the minimum wage. The tariff development in the country is taken into account. The Commission then presents a proposal, which the government usually makes binding with a regulation.
It is not possible to say exactly how many people work for the current minimum wage of 12 euros. According to the latest figures from the Federal Statistical Office, around six million employees (15 percent) were employed in the low-wage sector in October. The low-wage area includes jobs that pay less than 12.76 per hour. According to the information, around 5.8 million people who previously had less than 12 euros an hour benefited from the increase in the minimum wage to 12 euros in October.
The statutory minimum wage has existed in Germany since 2015. At the beginning it was 8.50 euros per hour, since then it has been increased several times.