On February 23, 2022, the German Federal Cabinet approved the draft legislation by Federal Labor Minister Hubertus Heil to raise the minimum wage, thus giving the green light to a key election promise of the Social Democratic Party (SPD). From October 1, 2022, the minimum wage is to be 12.00.
As early as the end of January 2022, German Federal Minister of Labor Hubertus Heil presented a draft bill for a new regulation of the minimum wage. Although this draft has still not been published, it is available to the news agencies Reuters and dpa, so the main contents are already known from the press.
The central component of the bill is to raise the minimum wage to 12.00 per hour on October 1, 2022. In addition, the earnings limit for mini-jobs, relevant for social insurance inclusion, is to be raised by 70 from the current 450 to 520. The earnings limit for employment in the transitional sector (midi-job) 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...
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