Germany plans to increase its minimum wage by the equivalent of nearly $3, or a 25% rise.
It's part of a deal agreed by a three-party coalition to form a new government.
Economists pay close attention to wage increases, which can be one sign of rising inflation.
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As many as 10 million workers could receive a pay rise in Germany under plans unveiled by the country's incoming government.
On Wednesday, a three-party coalition agreed a deal to form a new government to replace longstanding chancellor Angela Merkel. As part of the agreement, they want to increase the minimum wage from €9.60 ($10.70) an hour to €12 ($13.46) an hour, per CNN. A rise of 25%.
In the text of the deal, Olaf Scholz, leader of the Social Democratic Party, said that the increase would lead to salary increases for 10 million people, but didn't specify when the changes would be implemented.
There are around 1.4 million people earning the minimum wage in Germany. A further seven million are counted as low earners, according to national statistics.
Scholz's 10 million figure could reflect the fact that some sectors link the lower range of wage settlements to the minimum wage, said Carsten Brzeski, the global head of macro for ING.
The move is an increase on a raise of €10.45 ($11.72), which is scheduled for July 2022.
Following weeks of uncertainty since the September general election, Scholz has agreed to form a coalition government with the Greens and the Free Democratic party. Alongside the minimum wage increase, they also proposed legalizing cannabis and to stop burning coal by 2030.
Pay for American workers increased at its highest rate since 2004 during the third quarter of the year — lower wage earners, in particular, have received above-average gains.
Prices have also risen, cancelling out the benefits for many.
President Biden agreed to increase minimum pay for federal workers $15 an hour. It will be implemented from January 2022.
phonetastic on November 26th, 2021 at 18:48 UTC »
The thing that surprised me the most about this news when I first saw it is that only two million people are getting this raise, meaning only two million Germans are paid minimum wage. I think that's possibly even more impressive than the generous pay hike.
J-Colio on November 26th, 2021 at 17:24 UTC »
from €9.60 ($10.70) an hour to €12 ($13.46)
Assuming a full time 40 good work well, or 2080 hour work year.
From $22,256 to $27,996 a year.
I don't know about Germany, but many minimum wage jobs in America don't schedule you a full 40 hours because anything over 32 hours and you start talking benefits.
The5Virtues on November 26th, 2021 at 15:45 UTC »
Dammit America I really need you to get it together. I don’t have the money to move to friggin Europe, and my high school German ain’t gonna cut it!