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.