Draft law: Minimum wage is to rise to 12 euros on October 1st


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Status: 01/21/2022 5:07 p.m

Raising the minimum wage was a key campaign promise made by the SPD. As now emerges from a draft law that ARD Capital Studio is available, it should rise to 12 euros on October 1st.

By Moritz Rödle, ARD Capital Studio

From October 1st, around 6.2 million employees are to receive more money. This emerges from a draft law by the Federal Ministry of Labor on the statutory minimum wage, which ARD Capital Studio present.

Moritz Rödle
ARD Capital Studio

According to this, the minimum wage in Germany is to rise once from 10.45 euros to exactly 12 euros on October 1st. In the coming years, the so-called minimum wage commission, in which employers and employee representatives sit, will again discuss the amount.

Campaign promises of the SPD

According to the Federal Ministry of Labor around a fifth of all employees in Germany are low-wage earners. That means they get an hourly wage that is less than two-thirds of the average hourly wage. Only in Poland, Bulgaria and the Baltic States is the proportion of low-wage earners larger. In France, on the other hand, it is only 8.6 percent.

In Germany, only low wages are paid, especially for shop assistants, cleaning staff and employees in the catering trade. You could benefit now. The introduction of a higher minimum wage was a campaign promise made by the SPD. During the election campaign, Olaf Scholz had promised that, as Chancellor, he would immediately initiate a corresponding law.

Relief for municipalities

Not only employees could benefit from the minimum wage increase. When the new law comes into force, the Federal Ministry of Labor also expects revenue increases in the area of ​​statutory social insurance.

According to the draft law, around 700 million euros could flow into the system, for example into the pension fund. At the same time, the ministry expects relief in federal and local budgets because fewer low-wage earners could be dependent on social benefits.

Employers are considering a lawsuit

According to the draft law, employers who would have to raise their wages as a result of the law would have to pay around 1.63 billion euros more. As a result, it is to be expected that the prices for goods and services could rise moderately.

Employer representatives had already announced that they would consider a lawsuit against the law. Employer President Rainer Dulger said at the end of last year that he considered it a gross violation of collective bargaining autonomy.

The minimum wage is set to rise to €12 on October 1st

Uwe Jahn, ARD Berlin, 21.1.2022 6:00 p.m

Reference-www.tagesschau.de

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