The Federal Cabinet passed the Third Minimum Wage Adjustment Ordinance on October 28, 2020. This will gradually increase the statutory minimum wage from the current € 9.35 to € 10.45.
Here are the stages in detail:
- From January 1, 2021, the statutory minimum wage will be € 9.50 gross per hour.
- From July 1, 2021, it will rise to € 9.60 gross,
- from January 1, 2022 to € 9.82 gross
- and on July 1, 2022 it will be € 10.45 gross.
Federal Minister for Labor and Social Affairs Hubertus Heil says:
The adjustment proposed by the Minimum Wage Commission is based on the development of collective bargaining agreements, but also takes into account the economic uncertainties of the corona pandemic. The four-stage increase helps to distribute the resulting wage cost increases for companies in a sustainable manner and at the same time to constantly improve the minimum protection of employees over the next two years. But in perspective I can still clearly see room for improvement. Therefore, on the basis of the minimum wage evaluation, we will make proposals to further develop the minimum wage law so that the minimum wage can continue to rise quickly.BMAS press release v. 28.10.2020
The legal minimum wage is that by the Law regulating a general minimum wage (Minimum Wage Act - MiLoG) fixed lower wage limit. Currently, due to the Second Minimum Wage Adjustment Ordinance a minimum wage of € 9.35 gross per hour. Due to the Third Minimum Wage Adjustment Ordinance, the minimum wage will increase from January 2021. In addition, industry-specific collectively agreed minimum wages that are above the general statutory minimum wage still apply.