Commission not unanimous
The minimum wage is set to rise to EUR 12.41 in the coming year
06/26/2023, 10:02 am
Most recently, the traffic light had increased the minimum wage, now the commission is proposing again: the committee recommends an increase to 12.41 euros per hour for the coming year. But there are already protests within the committee.
The general statutory minimum wage in Germany is to be raised to EUR 12.41 on January 1, 2024 and to EUR 12.82 a year later. The responsible minimum wage commission in Berlin presented this proposal. This time, however, the recommendation was not made by consensus. The employee representatives in the Commission are against what they consider to be an insufficient increase and, according to their own statements, were outvoted in the Commission.
The Federal Government still has to make the proposal of the Minimum Wage Commission binding by ordinance. Usually that’s a formality. It remains unclear how things will work against the background of this voting result. “The resolution comes at a time of weak economic growth and persistently high inflation in Germany, which poses great challenges for companies and employees alike,” says the decision of the Minimum Wage Commission. The majority of the Commission considers it justifiable in the context of an overall consideration to increase the minimum wage to this extent.
The German Trade Union Confederation (DGB) announced that the Minimum Wage Commission had made an absolutely unsatisfactory decision against the votes of the unions. Board member Stefan Körzell, who is also a member of the Minimum Wage Commission, said in Berlin: “We could not lend a hand for an adjustment that was only in the cent range.” With the decision, the almost six million minimum-wage workers suffered an enormous loss of real wages. “In order to ensure minimum protection and to compensate for inflation, the minimum wage should have risen to at least 13.50 euros. The employers and the chairwoman of the commission have refused.” The positions were very far apart, said the chairwoman of the minimum wage commission, Christiane Schönefeld, at a press conference in Berlin.
Stalemate within the Commission
The negotiations lasted until the early hours of the morning. The traffic light coalition of the SPD, Greens and FDP last exceptionally increased the minimum wage from 10.45 euros to 12 euros by law on October 1, 2022. The SPD in particular campaigned for this in the 2021 federal election campaign. The current increase step should now come about as usual on the proposal of the Commission.
In view of the sharp rise in consumer prices, social associations, among others, had spoken out in favor of an increase of 2 euros to 14 euros and also pointed out that higher wages later lead to higher pensions. On the other hand, warnings came from the economy: “An increase in the minimum wage that was too significant and too rapid would be very difficult for many retail companies to cope with,” said the general manager of the German Retail Association (HDE), Stefan Genth.
The statutory minimum wage has existed in Germany since 2015. At the start it was 8.50 euros an hour and has since been increased several times. According to the minimum wage law, a commission made up of three employer and union representatives, two scientists and one chairperson must make a proposal every two years for the future level of the minimum wage, taking into account the development of wages in the country. Employer and employee representatives are entitled to vote. If there is a stalemate, the chairperson can establish a majority with his or her vote. That was the case this time.
According to the Federal Statistical Office, around 5.8 million employees who previously earned less than 12 euros an hour benefited from the last increase last autumn. Employers who violate the lower wage limit face fines of up to 500,000 euros.