The federal government has agreed to increase the minimum wage in Germany to 10,45 euros per hour by mid-2022. The raise will be enacted gradually, over four six-monthly increases. 

Statutory minimum wage on the rise in Germany

The statutory minimum wage in Germany will rise from 9,35 euros per hour to 10,45 euros by mid-2022. According to various media reports, the federal government passed a corresponding ordinance from Labour Minister Hubertus Heil on Wednesday. 

The ordinance stipulates that the increase will be brought about gradually, starting from January 1, 2021, when the minimum wage will rise by 15 cents. Three further increases will follow, of 10, 22 and 63 cents respectively, to hike the minimum hourly wage up to 10,45 euros by mid-2022. Overall, this will bring workers in Germany wage increases of over 1,3 billion euros. 

Coronavirus pandemic makes 2021 projections tricky

The cabinet’s decision is in line with recommendations put forward by the Minimum Wage Commission - an advisory group made up German companies and unions - at the end of June. 

The increase also takes into account “economic uncertainties” caused by the coronavirus pandemic - rising only slightly in 2021, and then more strongly in 2022, by which time ministers hope economic recovery should be well underway in Germany.