German Minimum Wage

Germany’s Controversial Minimum Wage Will See First Increase in 2017

By Stephen Fuchs on Email @StephenWFuchs

When Germany instituted its national minimum wage in January 2015, support was divided as businesses worried it would cut profits and employees feared job cuts. Two years later though, the 8.50 euro minimum will see its first increase to 8.84 euros, a rise of four percent.

An independent board is responsible for monitoring the financial and economic conditions in the country to ensure that the national wage is keeping up. The proposed increase was formally submitted back in June, which then fell into the hands of the German government for a yes or no vote — modifications are not allowed. On Wednesday it was announced that the new rate was approved and that it will go into effect on January 1, 2017.

Will this raise bring all of the nay-sayers back to shout economic doom? Some businesses will probably voice their concerns louder than others, but for those expressing concern, the last two years of the original minimum wage policy shows that most of the fears never came to fruition.

Sources: AP, DW

Photo: Dennis Skley [Flickr]

Stephen Fuchs
Stephen founded German Pulse and LGBT Germany out of a passion to introduce Americans to a Germany that goes beyond beer and polka (although with enough beer he has been known to polka it up a bit). He's a coffee addict, lover of wine and good times, a hit in the kitchen and editor of TV commercials. You can follow him on Twitter (@StephenWFuchs) to find out a lot more.
Stephen Fuchs on EmailStephen Fuchs on LinkedinStephen Fuchs on Twitter