German parliament approves higher minimum wage

BERLIN, Germany: Fulfilling a key campaign pledge made by Chancellor Olaf Scholz during last year’s election campaign, the German parliament has approved raising the country’s minimum wage to 12 euros ($12.84) per hour.

The increase of some 15 percent will take effect on 1st October, the government said, noting that some 6.2 million Germans currently work for less than 12 per euros per hour.

A relative late-comer, Germany introduced a national minimum wage of 8.50 euros per hour in 2015 at the insistence of Scholz’s center-left Social Democrats, who at the time were junior partners in conservative Chancellor Angela Merkel’s government.

A commission that includes labor union and employer representatives later approved an increase to the current 9.82 euros per hour, but this will rise to 10.45 euros on 1st July before it reaches the 12 euros minimum after October.

Scholz has argued for a minimum wage increase to 12 euros, making it a key part of his campaign in September.

On 1st October, Labor Minister Hubertus Heil told parliament that as many as 6 million Germans, including many women and workers in eastern Germany, would benefit from the highest wage rise ever seen by the country.

The minimum wage increase comes amidst an inflation surge following Russia’s invasion of Ukraine.

According to an official estimate this week, Germany’s annual inflation rate hit 7.9 percent in May, the highest rate since the winter of 1973-1974.

Disclaimer: This report is automatically generated from worldwide news services. NTN is not responsible for its content and does not moderate it.

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