The minimum wage in Germany has been raised from seven to eight euros per hour, and will become mandatory from 31 December 2016. The new statutory minimum wage will apply to most employees, with some exceptions. These include youth under the age of 18, apprentices, long-term unemployed people, and voluntary and non-profit workers. There will be a transition period during which wages below the new statutory minimum wage are allowed, but these will be phased out in the coming months.
Germany’s new national minimum wage was introduced in 2015. Scholz’s center-left Social Democrats, who were junior partners in Angela Merkel’s government, successfully pushed the legislation. The bill passed with a wide margin of 400 votes for and 41 against, and 202 abstentions. The opposition bloc, composed of the Christian Democrat Union and the Christian Social Union, opposed the bill.
Minimum wage in Germany in 2022
The new minimum wage was introduced to combat unemployment and promote economic growth. In the 1990s, the low-pay sector expanded dramatically, partly as a result of political decisions and deregulation of the labor market. Meanwhile, certain industries did not sign collective bargaining agreements, resulting in low wages. The new minimum wage is set at EUR12 per hour.
As of 2017, there were 5442 preliminary investigations for violations of the Minimum Wage Act. Of these, 3206 resulted in fines. Although this isn’t an exact measure, these figures give a good idea of the size of successful investigations. In addition, the new minimum wage will increase salaries in a number of industries.
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In the past, Germany was one of the few countries in Europe without a minimum wage. However, this changed in January 2015, thanks to the hard work and organizing efforts of the German trade unions. Moreover, the minimum wage has also strengthened the ability of trade unions to negotiate minimum wages in the collective bargaining agreements.
While the minimum wage in Germany has been steadily rising, it is still far below the minimum wage in other parts of the world. In Germany, most workers are covered by the minimum wage, although there are still some exceptions. For example, seasonal workers, apprentices, and those who work in job-promotion schemes are exempt from it. However, self-employed individuals are not covered by the minimum wage.
Minimum wage in Germany before
The median gross salary in Germany is 44 thousand euros. In comparison, the average wage in the United States is less than 29 thousand euros per year. This means that women earn less than men – around three-quarters less than their male counterparts. The wages of these people are influenced by the cost of living in the respective country.
However, the number of people in regular employment has continued to increase. In January 2015, over 30 million people were employed in regular jobs, excluding apprenticeships and under-18s. The number of people in marginal part-time employment has decreased. In April 2015, the number of people in Minijobs was 153,000 fewer than in January.
