Statutory minimum wage rises to 12.41 euros in 2024
The statutory minimum wage will rise in two stages by 82 cents to 12.82 euros. On January 1, the minimum wage will be raised to 12.41 euros gross per hour and one year later to 12.82 euros. A corresponding decree by Federal Minister of Labor Hubertus Heil (SPD) passed the cabinet on Wednesday, as announced by the ministry. The increase corresponds to a rise of 6.8 percent.
The ordinance does not require the approval of the Bundesrat and is due to come into force at the beginning of the year. The increase in the minimum wage is not keeping pace with inflation. However, the inflation rate in Germany has recently fallen again to 3.8 percent.
Employee representatives outvoted
The decision is based on a recommendation made by the minimum wage commission of employers and employees in June. The recommendation was not reached by consensus. The employee representatives consider the increase to be too low, but were outvoted.
There is also dissatisfaction within the coalition with the increase resulting from the commission. The increase is far too low and the commission's decision is "nothing more than a bad joke", Green Party deputy leader Andreas Audretsch told the German Press Agency. People working hard in difficult jobs for low wages deserved significantly more. The Minimum Wage Commission had broken with the consensus to reach a consensual decision.
Federal Chancellor Olaf Scholz (SPD) had also called for the Minimum Wage Commission to return to consensus-based decision-making in future. Scholz said in October that there were many people who were not doing well financially despite working hard. Audretsch called for a permanent minimum wage of at least 60 percent of the median wage. "That would be well over 14 euros in 2024."
The increase in the minimum wage will likely impact the income of many workers, encouraging them to seek out better-paying jobs or negotiate for higher wages within their current positions. Meanwhile, some cabinet members express disappointment with the increase, arguing that it falls short of providing a livable wage.
Source: www.dpa.com
