Germany has set a minimum wage of 12 euros – here’s what the consequences will be!

In July, the lower wage limit in Germany is to rise to 10.45 euros (currently 9.82 euros) per hour, and from October 1 to 12 euros. There will also be more money for so-called “minijobbers”: 520 euros per month, previously it was 450 euros.

More than 6 million Germans will benefit from the minimum wage increase

The increase is a matter of respect “for honest work” – Labor Minister Hubertus Heil of the SPD said yesterday. According to Heil, up to 6.2 million workers will benefit from the increase.

Verdi chief Frank Werneke believes that the increase in the minimum wage means that “millions of people in the lower wage brackets can expect higher wages in the medium term.” This is because the increase increases pressure on employers to also raise wages set according to the collective agreement.

With the new minimum wage, retirees after 45 years of contributions will receive 1131 euros per month, previously it was only 1093 euros.

Does this mean that many things will become more expensive?

The increase in the minimum wage is good news for low-income earners. But what will the implications be for pricing? Economic experts warn that despite the minimum wage increase, there may be less money left in your pocket at the end of the month.

Personnel costs for innkeepers and hoteliers will rise by up to 25 percent, says Ingrid Hartges, managing director of the Dehoga Restaurant Association. As a result, hotel accommodations and restaurant visits will become more expensive! A visit to the hairdresser may also soon cost more. The president of the hairdressers’ association, Manuela Härtelt-Dören, warns that wage increases will be “very problematic” for hairdressing companies. In many cases, price increases for services in this industry are inevitable.

Michael Wippler, president of the Bakers’ Association, also has a similar view: “Many bakers will have to rethink their calculations and raise prices.”


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