Germany - Increase of minimum wage agreed - June 30, 2016

The trade unions and the employers’ organisations agreed on the increase of the statutory minimum wage. The proposal is to lift the gross hourly minimum wage up to 8.84 euro. The agreement will lead to the first adaptation, after the introduction of the legal minimum wage that was introduced in January 2015. At the introduction of the statutory minimum wage the government had commissioned the task to review and update the level of the paid wage to a paritarian committee, with representatives of the central employers and trade union organisations. The calculations method is based on the development of the wage development in collective bargaining. The average wage increase in around 500 agreements in one and a half year was calculated at 3.2%. In a preparatory report, it was revealed that the introduction of the legal wage had had no negative consequences on employment. One remarkable effect is that the total size of so-called mini-jobs reduced, with mini-jobs being modified in more traditional contracts.

English: http://www.dw.com/en/german-minimum-wage-set-to-rise-in-2017 …

German: http://www.dgb.de/presse/++co++3d1eae2e-3d25-11e6-8be9-525400e5a74a

Report of the Minimum Wage Committee (German): http://www.mindestlohn-kommission.de … 

For more information, please contact the editor Jan Cremers, Amsterdam Institute for Advanced Labour Studies (AIAS) cbn-aias@uva.nl or the communications officer at the ETUI, Willy De Backer wdebacker@etui.org. For previous issues of the Collective bargaining newsletter please visit http://www.etui.org/E-Newsletters/Collective-bargaining-newsletter. Since June 2013 readers can consult our archive and search through all articles in our database at www.cbnarchive.euYou may find further information on the ETUI at www.etui.org, and on the AIAS at www.uva-aias.net.

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