Start on October 1st: Statutory minimum wage rises to 12 euros

Starting October 1st
Statutory minimum wage rises to 12 euros

After an intensive debate, the traffic light coalition, with votes from the Left Party, decides to raise the minimum wage to 12 euros from October 1st. Above all, many women and people in East Germany should benefit from it. CDU, AfD and employers speak out against the decision.

The statutory minimum wage in Germany will rise to 12 euros on October 1st. That was decided by the Bundestag in Berlin. Labor Minister Hubertus Heil’s minimum wage law was passed with the votes of the coalition and the left. The Union MPs and the AfD abstained. The gross minimum wage is currently EUR 9.82. On July 1, it will rise to EUR 10.45 as scheduled. At the same time, the limit for mini-jobs will rise from 450 to 520 euros in October.

The draft law assumes that there are currently around 6.2 million employees with an hourly wage of less than 12 euros. Women and people in East Germany should benefit disproportionately from the increase, as Heil said in the debate. For many, the wage increase is probably the biggest wage jump in their lives. Heil said that without Olaf Scholz as chancellor, the minimum wage would not be increased. The SPD politician had made raising the lower wage limit a core promise of the federal election campaign.

Several speakers warned that the current price explosion is threatening the very existence of many people. Left-wing budget expert Gesine Lötzsch said: “Actually, it should be 13 euros by now.” Another relief package is needed. Heil referred to the relief for people with normal and low incomes that the coalition is launching. Green social expert Andreas Audretsch said full-time people shouldn’t be at risk of poverty at the end of the day. The increase in the minimum wage also increases purchasing power.

CDU speaks of “disenfranchisement of the social partners”

The CDU social expert Hermann Gröhe accused the coalition of chaotic voices when it came to containing the enormous price increases. If further price jumps were allowed, a higher minimum wage would be of little use. Gröhe justified the non-approval of the Union by saying that she did not want to reach out to the “disenfranchisement of the social partners”.

The SPD MP Dagmar Schmidt admitted: “Many have to ask themselves whether the money is still enough for fruit, the trip to grandma, the school trip.” The coalition will continue to fight inflation. In addition, Schmidt promoted the “social climate money”, a planned one-off payment per year that Heil had announced for 2023. Schmidt called the increase in the minimum wage an “act of self-defense against falling collective wage agreements”.

AfD MP Norbert Kleinwaechter said that many foreign workers in Germany promoted competition on the job market and depressed wage levels. “A healthy market would not need a minimum wage, because it has rules and it has limits.”

FDP praises higher mini-job limit

The FDP social expert Pascal Kober praised the raising of the mini-job limit. Mini-jobbers would help when it comes to full shelves in the supermarket at any time of the day or service in the restaurant in the evening. With the increase in the mini-job limit, the shortage of skilled workers will also be counteracted to a small extent.

The employers’ association BDA had already criticized the minimum wage increase in advance. “We are not concerned with the amount of the minimum wage,” said employer president Rainer Dulger of “Welt”. “The federal government is not sticking to the agreements that we made in 2015 when the minimum wage commission was founded with the introduction of the statutory minimum wage.” The association rejects the idea that the increase step should now be passed once by the commission of employers and trade unions. The German Trade Union Confederation (DGB) criticized the raising of the mini-job limit.

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