Jan ZILIUS, Chairman of the Minimum Wage Commission, comments on today's decision:
"The adjustment of the minimum wage level is taking place in times of great economic uncertainty. Following in-depth consultations and sometimes controversial discussions, the social partners have succeeded in developing a mutually acceptable regulation for adjusting the minimum wage. The current crisis caused by the pandemic was a particular difficulty. Against the background of the available forecasts on economic development and the findings on the employment and competitive situation, the Minimum Wage Commission considers it justifiable to increase the minimum wage in these stages and to this extent as part of an overall assessment in order to effectively improve the minimum protection of employees.
Stefan KÖRZELL, member of the Executive Committee of the German Trade Union Confederation (DGB) explains:
"Despite difficult negotiations, the Minimum Wage Commission has unanimously voted in favour of raising the minimum wage, which at €10.45 will also be significantly higher than the wage index in the second year of the increase period.
In the next two years alone, the minimum wage increases will bring a total of almost 2 billion euros more into employees' wallets.
The desire expressed by many for a suspension of the increase was ultimately not able to prevail in the commission. In 2023, the next decision of the Minimum Wage Commission will be based on 10.45 euros. This is a significant step towards achieving the required 12 euros more quickly.
It is clear that the minimum wage can only be a lower stop line. Good collective agreements that apply as comprehensively as possible remain the most important instrument for regulating pay and working conditions for employees."
Steffen KAMPETER, Managing Director of the Confederation of German Employers' Associations (BDA), explains:
"With this decision, we have once again demonstrated how well social partnership can work in Germany and that we are working together to fulfil the legal mandate comprehensively and responsibly. Against the backdrop of this unprecedented economic recession, it was imperative that the minimum wage increase must also take account of the current economic and labour market situation.
For this reason, the Minimum Wage Commission has focussed on compensating for inflation as a first step, and in the subsequent steps we will take into account the subsequent development of collectively agreed wages. With the lower, staggered adjustment steps for 2021, we are creating more breathing space, especially for small and medium-sized companies, as they have been hit particularly hard by the coronavirus crisis and are having to fight for their economic existence. This will allow them to recover from the coronavirus-related slump in demand for longer and secure employment in the long term.
It was important to the social partners that this minimum wage increase would not invalidate any wage groups of existing sectoral collective agreements. This means that the final increase will remain within the framework of the collective agreements negotiated by the social partners."
The decision of the Minimum Wage Commission to adjust the level of the statutory minimum wage on 30 June 2020 and the Third Report are available at www.mindestlohn-kommission.de