German labour law

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German labour law refers to the regulation of employment relationships and industrial partnerships in Germany.

Contents

History

Courts and constitution

Individual labour law

Contract of employment

Dismissal

Collective labour law

Codetermination

Collective bargaining

Minimum wage law

Industrial worker in Cologne, Germany Cologne Germany Industrial-work-with-Personal-Protective-Equipment-01.jpg
Industrial worker in Cologne, Germany

Germany's minimum wage is €12.41 per hour, pre-tax since 1 January 2024. The legislation (German: Gesetz zur Regelung eines allgemeinen Mindestlohns) was introduced on January 1, 2015, by Angela Merkel's third government, a coalition between the SPD and the CDU. The implementation of a minimum wage was the SPD's main request during the coalition's negotiations as its central electoral promise during the 2013 federal election campaign. Previously, Germany had minimum wages only in specific sectors, negotiated by trade unions, and some were below the minimum wage level introduced in 2015. [1]

The initial minimum wage was 8.50 euros per hour, pre-tax. Since then, Germany's Minimum Wage Commission (Mindestlohnkommission) regularly proposes adjustments to the minimum wage level. It was last increased to 12 euros per hour pre-tax in October 2022. [2]

Due to inflation, in December 2022 this wage was worth as much as 9.80 euros were worth in January 2015. [3] [4] [5] A €12 wage implies a gross nominal monthly salary of €2,080 for a full-time employee, meaning someone working forty hours per week. [6] The increase to €12 was decided on 3 June 2022 by the Bundestag (400 to 41, with 200 abstentions). [7]

There remain exceptions to the wage minimum for workers on a traineeship, employees during their vocational training, volunteers, internships up to three months, young people and the long-term unemployed. [2]


See also

Notes

  1. "With eye on elections, Merkel pushes minimum wage". Reuters. 2012-04-25. Retrieved 2018-12-13.
  2. 1 2 "Customs online - Scope of application of the Minimum Wage Act". www.zoll.de. Retrieved 2022-06-06.
  3. Adjusted for increases in the cost of living (inflation) using the method and data source of IAB (next footnote). The inflation adjustment factor is from the Federal Statistical Office of Germany (next footnote). Example: From July to December 2021, the minimum wage was €9.60. Adjusted for inflation, it was €8.59 in July 2021, and €8.51 in December 2021. Note that January-2015-euros are not the same as 2015-euros. A hundred January-2015-euros are worth 98.50 2015-euros.
  4. Börschlein, Erik-Benjamin; Bossler, Mario. "Eine Bilanz nach fünf Jahren gesetzlicher Mindestlohn. Positive Lohneffekte, kaum Beschäftigungseffekte". Institut für Arbeitsmarkt- und Berufsforschung  [ de ]. p. 3. Retrieved 2021-11-22.
  5. "Inflation: Verbraucherpreise steigen im August um 7,9 Prozent". Der Spiegel (in German). 2022-08-30. ISSN   2195-1349 . Retrieved 2022-08-30.
  6. Appel, Andre (6 July 2022). "German Parliament Approves Increase in Minimum Wage to €12 per Hour, Effective October 1, 2022". The National Law Review. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Retrieved 8 September 2022.
  7. "German lawmakers approve €12 minimum wage". DW. 3 June 2022.

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