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Earnings & labour costs

1.8 million minimum wage jobs in April 2016

Im April 2016, there were just under 1.8 million jobs in Germany for which workers were paid the statutory gross minimum wage of 8.50 euros per hour worked. This was a decrease in the relevant jobs of roughly 150,000 on a year earlier. On the whole, the hourly wage rate was lower than 8.50 euros for 0.8 million jobs in April 2016 although they were subject to the Minimum Wage Act. A year earlier, the figure had been 1.0 million jobs.

Reduced working hours

In response to the introduction of the minimum wage, many employers reduced the number of paid working hours. They reduced the average weekly working hours of full-time workers receiving minimum wage by nearly 10%. So the average number of hours amounted to 36.2 in April 2016. In April 2014, that is, before the minimum wage was introduced, full-time workers who were paid less than the minimum wage still worked 40.1 paid hours per week. Consequently, the introduction of the minimum wage did not lead to gross monthly earnings that rose in the same way as the gross hourly earnings. In April 2016, the average earnings of full-time workers with minimum wage were a gross 1,336 euros (per month). This was an increase of 4% compared with April 2014. If the number of paid working hours per week had remained unchanged, the introduction of the minimum wage could have been expected to lead to an increase in the average gross monthly earnings to 1,481 euros.

Regarding marginally paid jobs with minimum wage, employers also reduced the average weekly working hours from 9.0 hours in April 2014 to 8.3 hours in April 2016. In the same period, the average gross monthly earnings increased by 16% from 264 euros to 306 euros.

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