The German Parliament has approved an increase in the minimum wage to 12 euros per hour -about 2,100 euros per month- from October 1, an increase of 22.2% compared to the current level, which will benefit more than six millions of people.
The increase will primarily benefit women and East German citizens, Labor Minister Hubertus Heil said in a tweet. The aim of the increase is to enable lower-income workers to cope with rising food and heating inflation, which, like the rest of Europe, are reaching record levels.
Germany introduced the minimum wage in 2015, being one of the few countries that did not have one until then. Its current level is 9.82 euros per hour, and an increase to 10.45 euros had already been approved as of July 1.
The strong national system of collective bargaining meant that unions did not see the need for a national minimum wage for many years, but the rise of low-paid jobs from the 1990s, especially after the absorption of the former Democratic Republic, led the grand coalition of Conservatives and Socialists to approve this measure. The current coalition of Socialists, Greens and Liberals agreed to raise the amount in their government agreement.
Martin Rosemann, SPD labor policy spokesman, said the minimum wage will help close the gender pay gap and “protect low-income people from poverty in old age”.
“Especially for the many employees in sectors with little collective bargaining coverage, such as catering, cleaning and retail, the increase in the minimum wage is also a sign of the respect that society has for these essential professions,” Rosemann said in a statement.
Facebook Comments
Disqus