Germany’s newly implemented minimum wage will pass the 100-day mark on April 10 2015. First reports for one of the country’s most debated reforms show that the economic catastrophe predicted by some economists and politicians as the result of the reform’s expected disastrous effects on employment has not actually come about. Higher prices had also been expected but remain moderate and limited to certain activities and regions in the East. Furthermore the scope of the minimum wage reform is narrower, only affecting some 1.87 million workers as compared with previous forecasts of 3.7 million. On the employer side the list of complaints remains lengthy and their hope is that the much anticipated meeting set for April 23 between experts in the field, Ministers and the Coalition party leaders will lead to what is for them much needed corrective measures.
Not a catastrophe for employment nor for prices. More than a year ago the Munich based Ifo Institute for Economic Research predicted that up to 950,000 jobs would be lost directly as a result of the introduction in January 2015 of the 8.50€ (gross) per hour minimum wage. However, nearly 100 days later nothing has happened to confirm this.
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