Minimum Wage Increase to €12

The statutory minimum wage in Germany will in all likelihood be raised to €12 per hour with effect from October 1, 2022. A corresponding bill by the government parliamentary groups, which among other things provides for the minimum wage increase, was approved by the German Bundestag on June 3, 2022. The legislative process has not yet been completed, as the Bundesrat also still has to be involved. This is to take place on June 10, 2022.

The changes to be expected with this at a glance:

• The increase in the minimum wage results in a gross salary of at least EUR 2,080.00 for a full-time job (40-hour week).
• In the future, the remuneration limit for marginally employed persons (“mini-jobs“) will be dynamic and based on a weekly working time of ten hours. It will thus rise to €520.
• For employees in transitional employment (“midijobs“), the remuneration limit will be raised to €1,600 in the future.

The current statutory increase represents an exceptional case of fulfilling an election promise. In the future, subsequent adjustments to the minimum wage will again be negotiated by the Minimum Wage Commission consisting of employer and union representatives, as expressly provided for in the Minimum Wage Act. Their next decision is then scheduled to take place on June 30, 2023, with effect from January 1, 2024.