Minimum Wage Increase to 15 Euros Could Impact 25% of Jobs

A proposed increase in the minimum wage to 15 euros per hour could enhance the earnings of approximately 9.5 million jobs across Germany, according to data sourced from the Federal Statistical Office. The inquiry regarding these statistics was initiated by members of the Left party in the Bundestag.

Currently, Germany's minimum wage stands at 12.82 euros per hour, and the proposal for an increase is supported by various political entities including the Left, SPD (Social Democratic Party), the Greens, and the BSW (Federal Association of Social Services). They are advocating for a swift adjustment to 15 euros. However, the Union and FDP (Free Democratic Party) express skepticism, indicating that any adjustments should originate from the Minimum Wage Commission. The AfD (Alternative for Germany) has not taken a definitive stance in its electoral platform.

Statistics reveal that about 24.4% of jobs currently pay less than the proposed minimum wage, with the figure rising to 30% in eastern German states, excluding Berlin. The impact is notably more significant for women, with 27.9% earning below the proposed threshold, compared to 21.1% of men.

Heidi Reichinnek, a leading candidate from the Left party, emphasized the importance of implementing the EU's minimum wage directive, arguing that a higher minimum wage could alleviate the risk of old-age poverty for many workers. She highlighted that jobs in the hospitality sector are particularly affected, with nearly 75% of positions currently paying below 15 euros per hour. The cultural sector also shows concerning figures, with over half of jobs falling short of the proposed wage.

Chancellor Olaf Scholz from the SPD noted that approximately seven million workers could benefit from a minimum wage increase, suggesting that such an adjustment would significantly reduce the number of individuals relying on citizen income support.

As political discussions continue, the potential implications of the minimum wage increase remain a focal point in the upcoming electoral conversations.