Germany increases minimum wage to 12 euros from October
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The German Government decided on Wednesday to increase the minimum wage to 12 euros per hour from October 2022. This is a 22 per cent increase on the current minimum wage.
A minimum wage of 12 euros per hour should apply to employees in Germany from October 1st, the German Federal Cabinet the change approved on Wednesday afternoon.
As the minimum wage is currently 9.82 euros in Germany and shall be increased to 10.45 euros on July 1, 2022, this means a 22 per cent increase in the minimum wage altogether.
Transport and logistics magazine Verkehrs Runschau reports some companies are worried about the increase. Markus Jerger, chairman of Mittelstandsverband, an organisation which represents small and medium sized companies, told the German logistics website:
“Of course there are sectors and economic regions that can pay 12 euros an hour. But a wage increase of 22 percent that is not enforced by productivity growth is unjustified and is a burden on small and medium-sized companies in particular.”
The association called the increase “an alarming violation of the economy 's collective bargaining autonomy” and claims it will lead to the loss of companies and jobs.