Germany: minimum wage, working time and Hartz IV the main social topics included in preliminary coalition agreement between SPD, Green and liberal parties

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

Around three weeks on from the 2021 German federal elections, the Social Democratic Party (SPD), which won the most seats as well as the popular vote, unveiled a preliminary deal alongside the Green and Free Democratic (FDP) parties with a view to forming a three-party coalition, which would be led SPD candidate Olaf Scholz as Chancellor. The document presented on Friday 15 October will form the basis of official talks between the three parties, who will negotiate, point by point, the measures that will be at the heart of the future “coalition contract”.

Among the social measures, the preliminary agreement provides for an increase in the legal minimum wage from €9.60 per hour at present to €12 per hour, from next year. This was one of the SPD’s key election promises (see article n°12682). The three parties have meanwhile struck a compromise on the topic of working time. On the one hand, they intend to support trade unions and employers in the development of flexible working time models. In future, employees should be able to “organise their working time more flexibly within the framework of collective agreements”. On the other hand, the preliminary agreement provides – as wanted by the FDP – for the creation of “limited scope for exemption from the current provisions of the working time law, with regard to the maximum daily working time”, but within the framework of collective or company agreements. In addition, the three parties state that they want to bolster codetermination and ongoing training, but without giving details. Finally, they agreed to modify the controversial welfare benefit “Hartz IV”, which would be renamed as “citizen’s income” (Bürgergeld).

Planet Labor, 18 October 2021, n°12743 – www.planetlabor.com

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Italy: decree-law adopted to increase workplace safety
On 28 October, the Italian cabinet adopted a decree-law on health and safety at work, aimed at preventing and reducing accidents. The text addresses both the powers and actions of supervisory...
4 November 2025
Romania: parents of children with disabilities granted up to eight days of remote work per month
On 9 October, the Romanian parliament adopted a bill aiming to bolster support for parents of children with disabilities up to the age of 18. The legislation, which came into force on 12 October...
Carrefour and UNI Global Union renew global agreement on promoting social dialogue and diversity
On 17 October, Carrefour, one of the world’s largest retailers, with nearly 500,000 employees worldwide, and global union federation UNI Global Union renewed their global agreement on...
mind RH analysis – Initial findings from CSRD social indicators
In 2025, for the first time, the universal registration documents of major European companies contain the sustainability reporting required by the EU Corporate Sustainability Reporting Directive...
31 October 2025
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Candice Guillot (Talan): “Our recruiters save just over 80 hours per year on administrative tasks thanks to AI”
Candice Guillot, group director of employee experience and HR performance at Talan (7,000 employees), outlines for mind RH her vision and strategy for introducing artificial intelligence at the...
20 October 2025
2
France: insurance sector becomes first to sign agreement on employment of older workers
On 25 June 2025, France Assureurs – the employers’ association for the insurance industry – and five representative trade unions signed the sector’s first three-year agreement aimed at promoting...