Concerns Raised Over Potential Crisis in Pharmacy Sector

The recent announcement by Germany's Minimum Wage Commission regarding an increase in the statutory minimum wage to EUR14.60 per hour by 2027 has raised significant concerns within the pharmaceutical sector. The association known as the Free Pharmacists' Association has highlighted that this wage hike poses an existential threat to many pharmacies across the country, jeopardizing the stability of medication supply.

Pharmacies are facing a 'fatal chain reaction' due to increased operational costs which they cannot pass on to consumers. The association's board expressed that the current remuneration for prescription medications has only seen a minimal adjustment since 2004, with a mere 25-cent increase in 2013. This stagnation means that while costs for suppliers and service providers have risen, pharmacy income has remained static for over two decades.

The Free Pharmacists' Association emphasized that this structural underfunding is becoming untenable for pharmacies. They contend that the sector is being utilized as an involuntary source of financing for external parties without receiving adequate compensation in return. Daniela Hänel, the association's chair, pointed out the injustice of pharmacies subsidizing the wages of suppliers while being unable to raise their own.

Moreover, the association highlighted that the situation is particularly dire for pharmaceutical personnel. With the impending wage increase, many pharmaceutical and commercial employees will find their salaries effectively reduced to the minimum wage level, despite their qualifications and responsibilities. This contrasts sharply with the salaries of nursing staff and medical assistants, who enjoy significantly higher pay.

The board clarified that pharmacists are committed to compensating their staff fairly and above the minimum wage to reflect their contributions and responsibilities. However, the combination of a fixed fee structure established in 2004, soaring operational costs, and a legal prohibition on price adjustments leaves little room for financial maneuvering. This predicament threatens staff retention and further exacerbates the ongoing issue of workforce shortages within the sector.

Additionally, the Free Pharmacists' Association cautioned against the risk of 'mini-job traps.' The new minimum wage will push many mini-job workers into mandatory social security contributions, as the threshold of EUR556 is easily surpassed at the new hourly rate. This situation could lead to reductions in working hours or lower net pay for those employees.

As discussions surrounding wage policies continue, the Free Pharmacists' Association urges policymakers to consider the long-term implications of these changes on the pharmacy sector's viability and the overall healthcare landscape in Germany.