Minimum wage for all… Branded “the fastest Minister in the German government” by the media, Andrea Nahles managed, in her first 100 as Employment Minister, to get the government to sign her second major bill after the controversial pension reform (see article No. 8134). Given the complicated name of “Act improving bargaining autonomy” (Tarifautonomiestärkungsgesetz), the bill provides for the introduction of minimum wage amounting to €8.5/hour (gross), which will apply to all sectors and, most importantly, across the country, starting on January 1, 2015. However, sectors with a collective agreement providing for a lower amount of minimum wage will have a 2 years’ transition period to maintain it: they will have to comply with the new law by January 1, 2017.
Germany: ‘grand coalition’ government adopts introduction of statutory universal minimum wage of €8.5/hour
Angela Merkel’s grand coalition, gathered at a cabinet meeting today, April 2, agreed, for the first time in the history of the Federal Republic of Germany, to the introduction of statutory minimum wage, which will amount to €8.5 an hour (gross) and apply to all sectors and all regions starting on January 1, 2015. The bill only provides for a few exceptions, unlike what employers’ organizations requested – excluding a lot of activities from the scope. Unions are very happy as the bill also improves the collective bargaining system, going through a major crisis, as the “general application procedure” will be reformed. Nearly 3.7 million workers should be covered by the new law, supposed to be adopted in July by the Bundestag and in September by the Bundesrat.
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