Minimum wage adjustment

The statutory minimum wage is a wage floor that applies to all employees.

Since 01.01.2015, there has been a general statutory minimum wage in Germany. It is regulated in the Minimum Wage Act (MiLoG). The statutory minimum wage represents a wage floor. This means that every employee is entitled to a gross wage at least equal to the statutory minimum wage. Collective agreements, employment contracts or some statutory regulations may stipulate a different wage level. However, an employer may not pay less than the statutory minimum wage. This applies to every hour actually worked. The statutory minimum wage also applies to marginal employment relationships (mini-jobs).

The amount of the minimum wage is adjusted at regular intervals. A permanent minimum wage commission decides on the adjustment every two years. It consists of representatives of employers' associations and trade unions. The Minimum Wage Commission takes various aspects into account when making its adjustment decision. In an overall assessment, it examines whether the new minimum wage is suitable,

• guarantee minimum protection for employees,
• enable fair and functioning competitive conditions and
• not jeopardize employment.

In addition, the Minimum Wage Commission is guided by wage developments when setting the minimum wage.
The Federal Government can make the decision of the Minimum Wage Commission binding for all employers and employees by statutory order. In doing so, the Federal Government can only adopt the level set by the Minimum Wage Commission unchanged. It cannot therefore make its own decision on the level of the minimum wage by statutory order.

When it was introduced on 01.01.2015, the statutory minimum wage was EUR 8.50 per hour. It has been raised regularly since then:

• from 01.01.2017 to EUR 8.84,
• from 01/01/2019 to EUR 9.19,
• from 01.01.2020 to EUR 9.35,
• from 01.01.2021 to EUR 9.50,
• from 01.07.2021 to EUR 9.60,
• from 01.01.2022 to EUR 9.82,
• from 01.07.2022 to EUR 10.45,
• to EUR 12.00 from 01.10.2022.

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• Forms: none
• Online procedure possible: no
• Written form required: no
• Personal appearance required: no

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