As early as the end of January 2022, German Federal Minister of Labor Hubertus Heil presented a draft bill governing the minimum wage. Although this draft has not yet been published, it was made available to various news agencies, so the main contents are already known through the press.
The central component of the bill is a raise in the minimum wage to 12.00 per hour on October 1, 2022. In addition, the earnings limit for mini-jobs,1 relevant for social insurance inclusion, will be raised by 70 from the current 450 to 520. The earnings limit for employment in the transitional sector (midi-job)2 will also be raised, by 300 from 1,300 per month to 1,600.
Up to now, regular increases in the minimum wage have been made by statutory ordinance on the proposal of the Minimum Wage Commission. This is a body made up of employee and employer representatives, which bases its proposals on the development of collective wages. As an exception to the rule, the increase to 12.00 will instead take place by law. As with the first statutory introduction of the minimum wage in 2015, however, there will then be a return to the tried and tested method and increases will be made by ordinance on the basis of proposals from the Minimum Wage Commission. The June 2022 deadline for the Minimum Wage Commission to pass a resolution on the adjustment of the minimum wage will therefore be suspended and postponed until June 2023, with initial effect from January 1, 2024.
The increase to 12.00 represents...
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