London (CNN Business) Almost 2 million workers in Europe's biggest economy are set for a big pay rise.
following lengthy coalition negotiations. Three German political parties agreed to form a new government on Wednesday, with left-leaning Social Democrat Olaf Scholz set to succeed Angela Merkel as chancellorfollowing lengthy coalition negotiations.
As part of the coalition agreement, the country plans to raise its minimum wage to €12 ($13.46) an hour, from the current rate of €9.60 ($10.77) an hour.
The move could boost the income of nearly 2 million people in Germany who earn minimum wage salaries, or about 5% of workers, according to Carsten Brzeski, an economist at ING. He said the move was "clearly significant."
The minimum wage was already set to rise to €10.45 ($11.72) in July 2022. The text of the coalition deal did not state when the bigger one-off increase will take effect.
green_flash on November 25th, 2021 at 19:13 UTC »
One point that has to be taken into account is that the government is already boosting the salary of one million workers so that they get a living wage. With the increase of the minimum wage, the government will save some money.
Also means that not all of those two million workers will actually get 25% more in cash. Because benefits will be cut accordingly.
morenewsat11 on November 25th, 2021 at 16:53 UTC »
"As part of the coalition agreement, the country plans to raise its minimum wage to €12 ($13.46) an hour, from the current rate of €9.60 ($10.77) an hour.".
An increase in the minimum wage is always a good place to start. Glad Germany didn't choose the nickle-and-dime approach.
wangan88 on November 25th, 2021 at 15:27 UTC »
France should do that..but instead we got 100€ compensation for rising cost of life yeah....