Increase in Minimum Wage: Düsseldorf sets €14.60 as minimum wage by 2027
Minimum Wage in Germany to Gradually Increase
The Minimum Wage Commission in Germany has proposed a two-stage increase in the national minimum wage, aiming to address poverty and wage dumping. The first stage of the increase takes effect on January 1, 2025, when the minimum wage rises from €12.41 to €12.82 per hour. A further increase to €13.50 per hour is proposed to take place on July 1, 2025.
The gradual approach allows workers to benefit from a higher floor wage more swiftly while giving employers time to adjust. The intention is to combat poverty by boosting the earnings of low-wage workers, thereby improving their purchasing power and living standards. At the same time, it seeks to reduce wage dumping—the practice of paying significantly lower wages than the sectoral or regional standards—by setting a clear, enforceable wage floor that employers must respect.
The Commission's recommendations follow broader efforts to strengthen wage protection and ensure fair labor market conditions, supporting social cohesion and economic inclusion. The proposed increases will bring the minimum wage to 60 percent of the median wage.
However, the article does not mention any potential solutions to the concerns raised by companies relying on seasonal workers, such as strawberry or asparagus farmers, who fear the minimum wage increase may jeopardize their competitiveness. It also does not discuss the potential effects of minimum wage increases on the economy as a whole or the impact of increased controls on undeclared work.
The DGB Düsseldorf, a trade union, has advocated for increased controls by the federal government, including customs controls for undeclared work. The Federal Ministry of Labor has announced it will follow the proposal for the minimum wage increase. The Commission has not specified any particular methods for these increased controls. It is also worth noting that not all industries ensure the payment of the statutory minimum wage.
In comparison, the minimum wage in Spain and Portugal is significantly lower compared to Germany. The DGB Düsseldorf has not specified any particular methods for these increased controls, and the article does not discuss the potential effects of minimum wage increases on the economy as a whole or the impact of increased controls on undeclared work. The article does not mention any potential solutions to the concerns raised by companies relying on seasonal workers.
[1] Source: Der Spiegel, "Minimum Lohn steigt ab 2025", 2023.
- The proposed minimum wage increase in Germany is a part of broader efforts in finance and politics, aiming to foster business growth by reducing poverty and addressing wage disparities.
- The gradual increase in minimum wage could have significant implications for general-news, particularly in terms of labor market conditions, economic inclusion, and the impact on various industries, such as agriculture that rely on seasonal workers.
