Development different than expected: Fewer self-employed after the minimum wage

The fear that employers might force their employees to become self-employed because of the statutory minimum wage has not yet come true, according to a study. On the contrary: after the introduction of the lower wage limit in 2015, another effect became noticeable.

According to a study, the statutory minimum wage initially did not lead to employers forcing employees into self-employment on a large scale. After the introduction of the statutory lower wage limit at the beginning of 2015, solo self-employment fell by 7.4 percent a year later, as shown in a study by the Center for European Economic Research (ZEW) and the Institute for Employment Research (IAB) on behalf of the Minimum Wage Commission emerges.

Accordingly, there were also declines in sectors particularly affected, such as janitorial or repair services. This would dispel fears that employers would force their workers to become self-employed on a large scale in order not to have to pay the minimum wage, explained ZEW expert Moritz Lubczyk. Overall, there was already a sustained decline in solo self-employment in Germany before 2015, according to the information.

In the years around the introduction of the minimum wage, the German economy ran smoothly. In general, the number of people who started their own business because of a lack of alternatives on the job market fell during this period. According to the study, this development was further intensified by the effects of the minimum wage.

The statutory minimum wage was introduced on January 1, 2015 at a gross amount of EUR 8.50 per hour. Most recently there was an increase in two stages to the current 9.35 euros. It will be increased to EUR 9.60 on July 1, 2021, to EUR 9.82 on January 1, 2022 and to EUR 10.45 on July 1, 2022. The responsible commission made up of representatives from employers, trade unions and academia makes recommendations. In addition, there are collectively agreed minimum wages in several sectors.

. (tagsToTranslate) economy (t) minimum wage (t) studies (t) self-employment (t) employer