Job Destroyer I Am
The minimum wage in Germany is set to rise to €14.60 per hour by 2027, a gradual increase from the current rate of €12.82. This regulation, introduced in 2015, has been a subject of ongoing debate, with criticisms and support coming from various quarters.
One of the key criticisms is the median calculation for the minimum wage, which, according to the Left party, excludes the fact that the top one percent in Germany earns €213,000. This, they argue, degrades those earning the minimum wage to second-class employees.
Marcel Fratzscher, president of the German Institute for Economic Research (DIW), has pointed out a shift in employment between employers since the introduction of the minimum wage. However, the federal government, led by Union and SPD, has stated that the minimum wage has had no influence on the employment rate in the past ten years.
The average workshop allowance, which is approximately €220 per month, translates to €1.46 per hour. This has been a point of contention, with some arguing that it does not provide a living wage.
The Minimum Wage Act was originally intended to protect the employment relationship in workshops without creating the same obligations as in a regular employee relationship. However, it does not apply to trainees, long-term unemployed, employees under 18 years of age without vocational training, and employees in workshops for people with disabilities.
Critics, such as the Left party's Zerr, consider these exclusions a "scandal." They argue that these groups should be included to ensure fair wages for all. The federal government, however, does not plan to expand the protective function of the Minimum Wage Act to these groups.
There have been reports of smaller businesses in structurally weak regions losing employees as a result of the minimum wage. On the other hand, the Institute for Employment Research has stated that the regulation is rarely used and therefore has no measurable effect on wages.
The trade union-affiliated Hans-Böckler Foundation has calculated that a minimum wage of around €15 would be required by 2025. The Left party, in line with this, demands an increase to €16 in 2026.
The situation is complex, with arguments on both sides. The debate continues as Germany navigates the balance between economic stability and social justice.
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