In January next year, Federal Labor Minister Hubertus Heil expects a “significant increase” in the minimum wage. An SPD politician told the Bild am Sonntag newspaper: “Not only do we have high inflation, but we also have an appropriate wage increase, which will be reflected in the next minimum wage increase.”
Federal Labor Minister Hubertus Heil said the Minimum Wage Commission would present him with a proposal this summer. Currently, the minimum wage in Germany is 12 euros per hour.
Due to high inflation last month, a dispute has already erupted over the next minimum wage increase. Public organizations have called for a significant increase – up to 14 euros and more, and employers have warned of “unrealistic levels”.
Last year, a traffic light coalition of SPD, Greens and FDP raised the minimum wage on an exceptional basis. Since October 1, 2022, it has gone from 10.45 euros to 12 euros. The next increase will again be proposed by a commission on the minimum wage with the participation of representatives of employers and employees. This must be done by June 30 and will be effective January 1, 2024.
Labor Secretary Heil also wants to introduce legislation by the summer that would only allow future federal contracts with companies that abide by labor contracts. “If we – as a state – spend tax money, then entrepreneurs who don’t pay their employees properly should no longer benefit.”
The SPD, the Greens and the FDP have already reached such a consensus in their coalition agreement to strengthen collective bargaining. By June, Heil said, he and Economy Minister Robert Habeck (the Greens) will present a bill that would force the federal government to comply with the tariffs. If all goes well in the Bundestag, the law should come into force on January 1, 2024.