Germany’s general statutory minimum wage has been established on 1 January 2015. Starting 1 October 2022, the minimum gross hourly wage employees will be entitled to € 12.00.
The Federal Government has set up a standing Minimum Wage Commission to adjust the minimum wage amount. The Minimum Wage Commission is newly appointed every five years in accordance with Section 4 (2) of the German Minimum Wage Act (MiLoG). It consists of a chairperson, six permanent members with voting rights and two advisory members chosen from the scientific community who do not have voting rights in the Commission. The members of the Minimum Wage Commission work on a voluntary basis.
For the resolution on adjusting the minimum wage, the Commission conducts an overall assessment of what is the minimum wage amount suitable to contribute to an appropriate protection for workers, to enable fair and functioning conditions of competition and to avoid jeopardising employment. For its recommendation of a minimum wage amount, the Minimum Wage Commission then also considers collective wage developments (Section 9 (2) of the MiLoG).
Furthermore, the Minimum Wage Commission has a statutory mandate (Section 9 (4) of the MiLoG) to constantly evaluate the impact of the minimum wage on the protection of workers, conditions of competition, employment in regard to certain industries and regions as well as on productivity. The Commission presents the results of its evaluation to the Federal Government in a report together with its resolution every other year.