IN FOCUS / 2016-06-28
Minimum wage up to 8.84 euros
The Minimum Wage Commission has decided for the first time to adjust the statutory minimum wage in Germany: it will be raised to 8.84 euros per hour from 1 January 2017.
The Minimum Wage Commission's rules of procedure stipulate that the monthly index of agreed hourly earnings, excluding extra payments is used as the basis for decision making. The index rose by 3.2% between December 2014 and June 2016. This rate of change reflects all pay settlements and previously agreed staged pay rises paid out from January 2015 up to and including June 2016.
In reaching its decision, the Commission also considered the recent pay settlement for the public service. The agreed pay rise will not be due until the second half of this year, but will then be retroactive to 1 March 2016. Simulated calculations have shown that the pay settlement for the public service would have increased the rate of change from +3.2% to +4.0%.
For more information please refer to the pages on Minimum wages.