Will Germany’s Workers Have to Wait Longer for a Pay Rise?

Will Germany's Workers Have to Wait Longer for a Pay Rise?

A development in the German minimum wage commission’s decision-making process has emerged, potentially altering the expected timeline for the announcement of the new statutory minimum wage. According to reports by the Rheinische Post, citing sources from labor unions and employer associations, the commission is still in intense negotiations to reach a consensus among the social partners.

Initially, the commission’s chairperson had announced a press conference for this Friday at 1 pm, which has now been described as a “wishful date” or a “placeholder.” Instead, the commission may present its decision as early as next Monday, which would be the latest possible date according to legal regulations.

The minimum wage commission, comprising representatives from labor unions and employer associations, meets biennially to discuss a potential increase in the minimum wage. Currently, the law only requires the commission to orient itself towards the development of collective bargaining agreements. Since November 2022, the EU’s minimum wage directive has also been in effect, stipulating the need for a minimum wage to be anchored to fixed standards and citing the median gross wage as a possible option. Based on calculations by the Hans-Böckler Foundation, a labor union-affiliated think tank, the minimum wage could have already reached 13.50 euros in 2023 if it were to be oriented towards the median gross wage.