Against the background of industrial unrest in other sectors, the social partners of Joint Committee 200 –the Committee representing the largest number of employees in the country, more than 480.000 in total – have quietly come to an agreement on employment and working conditions. The most important provisions of the agreement are summarized within this post.
As of 1 December 2021, both minimum wage scales and actual gross monthly wages will increase by 0.4%.
Employees who are currently paid the minimum wage scales must receive the increase as of 1 December 2021. It can be granted through a salary increase or cash bonus of at least that amount and/or the provision of other benefits of equivalent purchasing power.
If the increase is awarded as a one-off premium, a single payment of 0.4% of salary, that payment must be made in the period 2021-2022, by 31 December 2022 at the latest. It must also be paid in succeeding years so that the benefit of the increase is not lost. The total cost (including employers’ social security contributions) of the actual increase and/or other benefits is counted for the 0.4%. If the increase is provided by an annual lump sum, it is important to set clear rules on the entitlements of employees who leave the company mid-year.
If a company wishes to award an equivalent benefit in full or partial replacement for the cash increase, this will require an agreement with the union delegation by 30 November 2021 at the latest, so you have...
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