Germany’s minimum wage will rise to €14.60 by 2027, benefiting six million workers in the country’s largest increase since its introduction.
BERLIN: Germany’s government has approved a record minimum wage increase to €14.60 per hour.
This represents the largest hike since the country first adopted a minimum wage a decade ago.
The increase will be implemented in two stages over the coming years.
The current rate of €12.82 will rise to €13.90 at the start of next year.
It will then increase to €14.60 per hour on January 1, 2027.
Labour Minister Baerbel Bas said “millions of employees will receive noticeably more for their work”.
She added that “companies can responsibly spread the rising costs over two years”.
The minister described the hike as “an important step towards greater fairness and recognition for those who keep our country running day in and day out”.
Approximately six million workers in Germany will benefit from the increase.
An independent commission recommended the two-stage increase back in June.
The commission includes economists, trade union leaders and business representatives.
However, the increases fall short of the €15 per hour minimum wage discussed in the coalition agreement.
Some SPD politicians have called for mandating the higher wage directly.
This proposal has drawn criticism from conservative coalition partners.
The coalition agreement described a €15 minimum wage by 2026 as “achievable” but didn’t commit to it directly. – AFP
