Editor in chief at IamExpat Media
The Bundestag has passed a draft law, submitted by the Federal Cabinet, to increase the minimum wage in Germany to 12 euros per hour from October 1, 2022. The adjustment will benefit millions of workers in Germany.
Against the backdrop of an escalating cost of living crisis, the German parliament has given the green light to a 22-percent increase in the statutory minimum wage. From October, more than 6 million workers across the country will see their hourly wage increase to at least 12 euros.
In a speech before the vote, Labour Minister Hubertus Heil said that the increase would be “possibly the biggest jump in wages in their lives.” He added that “a poverty-proof minimum wage is a question of performance justice and respect for honest work”, while also being advantageous economically: “In this way, we strengthen purchasing power and give an important impetus to economic recovery.”
The government’s professed goal with the increase is to ensure that even low-wage workers should be able to make a decent living, and that those who work full-time hours should receive a good pension at the end of their working lives. The draft law now only needs the Bundesrat’s approval.
The increase in the minimum wage also affects marginal employment - so-called mini-jobs or 450-euro jobs, for which salaries are not subject to social security. In order to make it possible to work 10 hours a week at minimum wage, the draft law will increase the mini-job limit to 520 euros per month and gradually adjust it in future.
Earnings limits for so-called midi-jobs will also be raised, from 1.300 euros per month to 1.600 euros per month. This should provide extra relief to workers who are subject to social security contributions.