Germany to Push for 22% Minimum Wage Increase to Around 16,000 Won Within the Year

▲Olaf Scholz, German Chancellor [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The German government will raise the minimum wage by 22% within the year, from 9.82 euros (approximately 13,328 won) to 12 euros (approximately 16,287 won).

According to local German media such as dpa on the 10th (local time), Hubertus Heil, Germany's Minister of Labor, announced that the minimum wage will be increased within the year.

He stated, "Chancellor Olaf Scholz pledged during his candidacy to raise the minimum wage to 12 euros within one year," adding, "From the perspective of respecting labor, the minimum wage should be raised to 12 euros."

Germany's minimum wage was increased by 22 cents per hour as of January 1st and currently stands at 9.82 euros per hour.

Earlier, on December 8th last year, the newly formed traffic light coalition government (Social Democratic Party - red, Free Democratic Party - yellow, Green Party - green) announced in their coalition agreement a pledge to raise the minimum wage to 12 euros.

Typically, Germany's minimum wage is set based on standards proposed by the so-called Minimum Wage Commission, composed of representatives from employers and labor unions. In particular, the employer side is critical of raising the minimum wage through legislation.

Minister Heil said, "If employer associations do not want state intervention, they need to do their homework," adding, "Currently, only 48% of workers are bound by collective agreements."

He also said, "Many people in our country work in excessively low-wage sectors and barely make a living even while working full-time."

Minister Heil predicted that the minimum wage increase will benefit millions, including women and residents of the former East Germany, who are particularly affected by low wages due to the small number of workers covered by collective agreements.

This content was produced with the assistance of AI translation services.