- Nordic German businesses reject proposed minimum wage of 15 Euros
The northern economic sector has slammed the proposition by Federal Minister of Labor Hubertus Heil (SPD) to boost the minimum wage to an maximum of 15 euros. According to Philipp Murmann, head of the Association of Employers in Hamburg and Schleswig-Holstein, "Even with the minimum wage hike to 12 euros as a result of SPD's federal election campaign, the traffic light government had already undermined the Minimum Wage Commission." Now, the government themselves plans to dictate wages.
"We'll fight this with every ounce of our energy," Murmann declared. While it's one thing for politics to persistently demand higher minimum wages, it's another for political interference to appear to be intent on crippling collective bargaining agents in critical sectors.
Additionally, Murmann believes that the point of no return has been reached where the minimum wage costs jobs. "The gap to other more generously compensated wage groups is also a major issue for employers," he stated. This will lead to turmoil in businesses or force employers to implement additional wage hikes, resulting in increased prices as service providers try to shift higher labor costs onto customers.
Minimum Wage Hike Within Two Years
German employees can anticipate a minimum wage hike to a maximum of 15 euros within the next two years. According to Federal Minister of Labor Hubertus Heil, this is a necessary consequence of an EU law. "By the way, 6 million people will profit from this," the SPD politician said on the ARD morning magazine on Monday.
The statutory minimum wage currently stands at 12.41 euros gross per hour. As of January 1, 2025, the minimum wage will increase to 12.82 euros, as per existing decisions. Heil: "And then, in the year 2026, the minimum wage will be between 14 and 15 euros." The minimum wage had not kept pace with inflation. However, the inflation rate in Germany has recently dropped to 1.9 percent compared to the previous year.
Despite the opposition from the northern economic sector, including the Association of Employers in Hamburg and Schleswig-Holstein, Germany is set to implement a minimum wage hike within the next two years. According to Federal Minister of Labor Hubertus Heil, this increase is a necessary consequence of an EU law and will benefit 6 million people.
