Minimum wage increase in four steps to 10,45 euro fixed.

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The statutory minimum wage is to rise to 10.45 Euro in four half-yearly steps by mid 2022. According to the Federal Government’s decision, there will be a 15 cent increase in January 2021 – which means it will lag behind the development of collectively agreed wages.

The statutory minimum wage in Germany will rise to 10.45 euros per hour by mid 2022. According to information from government circles, the federal government passed a corresponding ordinance on Wednesday from Minister of Labor Hubertus Heil (SPD). In four six-monthly steps, the minimum wage of 9.35 euros will rise by 15 cents, 10 cents, 22 cents and 63 cents from January 1, 2021. Altogether this brings employees wage increases of over 1.3 billion euro.

The cabinet decision implements the recommendation of the Minimum Wage Commission of employers and unions from the end of June. The Corona pandemic will not remain without consequences here either. The 2021 increases will lag behind the development of collective wages, which are to be decisive for the Commission. This is intended to take account of the “economic uncertainties” caused by the corona pandemic. In 2022, the increases will be higher. Over the entire period of two years, the minimum wage will rise by 5.26 percent according to the regulation, which is slightly higher than if it were strictly based on collectively agreed wages.

Reuters.

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