What should the federal minimum wage be?
How will the minimum wage develop by 2022?
The minimum wage commission had recommended increasing the minimum wage in several steps to 10.45 euros by July 1, 2022. The federal government followed this recommendation. The incremental steps are in detail:
- as of January 1, 2021: 9.50 euros
- as of July 1, 2021: 9.60 euros
- as of January 1, 2022: 9.82 euros
- as of July 1, 2022: 10.45 euros
Federal Labor Minister Hubertus Heil had submitted the recommendation of the minimum wage commission to the federal cabinet for approval.
What is the current minimum wage and why was it introduced?
The statutory minimum wage has been 9.50 euros gross since January 1, 2021. By July 1, 2022, it will increase in several steps to 10.45 euros.
A general, statutory minimum wage protects employees from inappropriately low wages and thus contributes to fair and well-functioning competition. At the same time, it ensures more stability in the social security systems.
The Federal Ministry of Labor's minimum wage calculator helps to find out whether and to what extent a salary corresponds to, above or below the minimum wage and how high the hourly wage is.
Who does the general minimum wage apply to?
The statutory minimum wage applies to all employees over the age of 18. Under certain conditions, interns are also entitled to a minimum wage.
No employees within the meaning of the Minimum Wage Act are:
- Trainees according to the Vocational Training Act,
- volunteers and people doing voluntary service,
- Participants in a job promotion measure,
- Long-term unemployed within the first six months after re-entering the labor market.
Former long-term unemployed people are immediately entitled to industry minimum wages, because these wages are collectively agreed.
What applies to people with a mini job?
The statutory minimum wage applies regardless of working hours or the scope of employment - and thus also for mini-jobbers. It is a gross hourly wage. In addition, the employer pays the contributions to the statutory health and pension insurance.
The employer must record the working hours of mini-jobbers and keep these records for two years in order to be able to present them for an inspection by customs.
When are employers subject to documentation requirements?
A documentation requirement for employers generally applies to marginal part-time employees and the economic sectors named in the Anti-Illicit Work Act. Newspaper deliverers and employees at parcel services must also regularly record their working hours.
Is a client liable if a subcontractor does not adhere to the minimum wage law?
A client is liable for compliance with the statutory minimum wage if he hires another entrepreneur to provide work or services. This so-called client liability has been in force in the Posted Workers Act for many years. The minimum wage law uses this existing rule, as it has proven itself.
Who decides whether to adjust the minimum wage?
An independent commission of the collective bargaining partners, the minimum wage commission, proposes to the federal government every two years how much the minimum wage should be adjusted. It checks which minimum wage level offers adequate minimum protection for employees, enables fair competitive conditions and does not endanger employment. The Commission bases its decision on the development of collectively agreed wages in Germany.
The minimum wage commission also continuously evaluates the effects of the minimum wage and makes its findings available to the federal government in a report every two years.
How is the minimum wage commission composed?
The minimum wage commission consists of a chairperson and six voting members and two advisory members. Every five years, the central associations of employers and employees each propose three representatives for the commission.
The two advisory members are not entitled to vote and should contribute their scientific expertise. The members are named by the collective bargaining partners and then appointed by the federal government.
Who checks that the minimum wage is paid? What sanctions are there for violations?
The control lies with the authorities of the customs administration (financial control of undeclared work).
Minimum wage violations can be sanctioned with a fine of up to 500,000 euros. Violations of obligations such as the documentation of working hours can be punished with up to 30,000 euros. In addition, the company can be excluded from public procurement.
Where can employees turn to with questions about the minimum wage?
The minimum wage hotline accepts complaints and reports of violations and answers all questions about the minimum wage. She can be reached Monday to Thursday from 8 a.m. to 8 p.m. on 030 60 28 00 28.
Customs is responsible for prosecuting legal violations. There is also the option of suing the labor court responsible for the minimum wage.
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