August 14, 2022

Volume XII, Number 226

Advertisement
Advertisement

August 12, 2022

Subscribe to Latest Legal News and Analysis

August 11, 2022

Subscribe to Latest Legal News and Analysis

German Parliament Approves Increase in Minimum Wage to €12 per Hour, Effective October 1, 2022

The statutory minimum wage in Germany will increase to €12 per hour, effective October 1, 2022.

On June 3, 2022, the German Bundestag approved legislation introduced by a coalition of parliamentary groups that will raise the national minimum wage from the current €9.82 per hour to €12.00 per hour by October 1, 2022.

These are the changes to be expected:

  • The increase in the minimum wage will result in a monthly gross salary of at least €2,080 for a full-time job (forty-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. Mini-job monthly pay will thus rise to €520.

  • For employees in transitional employment (“midi-jobs”), the monthly remuneration limit will be raised to €1,600.

The current statutory increase represents an exceptional case of fulfilling an election promise. Future adjustments to the minimum wage will again be negotiated by the Minimum Wage Commission, which consists of employer and union representatives, as expressly provided for in the Minimum Wage Act. The Minimum Wage Commission’s next decision is scheduled to occur on June 30, 2023, and would take effect on January 1, 2024.

© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume XII, Number 187
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Andre Appel Labor & Employment Lawyer Ogletree Deakins law Firm Berlin
Counsel

Andre Appel has been working as a certified specialist for employment law at the Berlin office of Ogletree Deakins International LLP since January 2020. He advises national and international companies on all aspects of individual and collective labor and employment law as well as the public sector in all matters relating to service and labor law. Additionally, he advises on all questions relating to national and European data protection.

Mr. Appel assists clients in dealing with all daily challenges that involve the entire spectrum of employment...

+49 30 862030 133
Advertisement
Advertisement
Advertisement