Recent governmental analysis indicates Germany’s national minimum wage has not demonstrably impacted overall employment levels since its introduction in 2015 This assessment stems from a response provided by the Federal Ministry of Labour to a parliamentary inquiry submitted by the Left Party, as reported by the “Rheinische Post”
The ministry’s response details that numerous studies investigating the employment effects of the minimum wage have found, in aggregate, either no significant correlation or minimal impact on employment figures
The Left Party is leveraging this information to advocate for a higher minimum wage Anne Zerr, a member of the Bundestag for the Left Party, stated that fair wages do not necessarily result in increased unemployment, countering arguments often made by employer associations She is proposing a minimum wage of 16 euros by 2026, with subsequent increases tied to inflation Currently, the minimum wage stands at 1282 euros per hour and is scheduled to rise to 1390 euros in 2026
Marcel Fratzscher, President of the German Institute for Economic Research (DIW), suggests there is potential flexibility for a more substantial increase He posits that a stronger rise in the minimum wage than currently proposed by the Minimum Wage Commission is likely achievable without causing significant job losses and could lead to considerable income gains However, Fratzscher cautioned that predicting the threshold at which increased minimum wage levels would trigger substantial employment effects remains difficult