Federal Labor Minister Hubertus Heil expects a “significant increase” in the minimum wage next January. That’s what the SPD politician said in the “Bild am Sonntag”. “Because we not only continue to have high inflation, but also decent wage increases, which will be reflected in the upcoming increase in the minimum wage.”
In the summer, the minimum wage commission will make him a proposal. The minimum wage in Germany is currently 12 euros per hour.
In view of the high inflation, a dispute about the next minimum wage increase had already flared up last month. Social associations called for a sharp increase to 14 euros and more, employers warned of “unrealistic heights”.
The traffic light coalition of SPD, Greens and FDP exceptionally raised the minimum wage last year by law. On October 1, 2022, it had risen from EUR 10.45 to EUR 12. The minimum wage commission with representatives of employers and employees should then propose the next step in the increase. This is to be done by June 30 with effect from January 1, 2024.
Heil: Change in the law on federal contracts
Labor Minister Heil also wants to introduce a law by the summer according to which federal contracts may only be awarded to companies that adhere to collective agreements. “If we as a state spend tax money, then entrepreneurs who don’t pay their people properly should no longer benefit from it.”
The SPD, Greens and FDP had already agreed this in their coalition agreement in order to strengthen collective bargaining. By June, he and Minister of Economics Robert Habeck (Greens) will present a draft law that stipulates adherence to collective bargaining agreements in the federal government, said Heil. If everything goes well in the Bundestag, the law should come into force on January 1, 2024. (dpa)
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