From October, the statutory minimum wage in Germany will be twelve euros.
(Photo: dpa)
Berlin The federal government has initiated an increase in the statutory minimum wage to twelve euros on October 1st and higher earnings limits for mini-jobs. The cabinet approved a corresponding proposal by Labor Minister Hubertus Heil (SPD) on Wednesday. The cabinet decision is followed by a referral in the Bundestag.
During the Bundestag election campaign, the SPD and the Greens had promised to raise the minimum wage. In the coalition agreement, the FDP, for its part, pushed through an increase in the limit for mini-jobs by 70 euros. From October 1st, monthly earnings of up to 520 euros will remain tax and social security-free for employees.
According to the draft law, around 6.2 million employees can expect a salary increase as a result of the higher minimum wage. Employers are therefore faced with additional costs of around 5.6 billion euros per year for which social security contributions are incurred. Additional income of 2.2 billion euros is therefore expected for social insurance. The minimum wage is currently €9.82. On July 1, the lower wage limit will increase to EUR 10.45 according to current law.
The earnings limit for mini-jobs, currently €450 a month, was last increased in 2013. While they are tax-free for employees, employers pay a flat rate to the social security funds and the tax office. In June 2021 there were around 7.4 million mini-jobbers. For a good three million of them, this was a part-time job alongside their main job.
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