Germany’s new traffic light government is making good on one of its cornerstone coalition agreement policies and raising the minimum wage to 12 euros per hour. Despite some pushback from employers, the Federal Labour Ministry has insisted the project will be implemented this year.
The minimum wage in Germany is already increasing in two stages in 2022. As of January 1, 2022, it has risen to 9,82 euros per hour, and from July 1, 2022, it will go up again to 10,45 euros per hour. But that’s not where the increases stop.
The SPD party fought the last federal election under the promise to increase the minimum wage to 12 euros per hour, and wants to push the policy through this year. “As candidate for chancellor, Olaf Scholz said we would increase the minimum wage to 12 euros within a year,” explained Federal Labour Minister Hubertus Heil. “And we will increase it in 2022 because it is necessary.”
Heil said that he would present a draft law “in the next few weeks," to be voted on by Germany’s parliament. “The increase to 12 euros will and must come,” he insisted. “It’s a question of fair performance and respect for decent work.”
However, the plan is being thrown into potential jeopardy by a legal challenge from employers’ associations in Germany. Rather than the wage increase itself, they have taken issue with how the government is proposing to push it through.
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