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
EU: Council curbs the Commission’s proposed easing of social safeguards in digital legislation
The news. On 21 October 2026, the Council of the EU agreed its negotiating mandate on the Digital Omnibus, proposed by the Commission in November 2025 to ease several provisions in digital...
Croatia: 7.6% minimum wage increase from 1 January 2027
The news. On 29 October, the Croatian Council of Ministers adopted a decree setting the minimum wage for 2027. This will rise from €1,050 to €1,130 gross per month from 1 January next...
UK: trade unions now have a statutory right of access to workplaces 
The news. Since 30 October, British trade unions (certified as independent) have been able to gain physical access to the premises of businesses with more than 21 employees in order to meet staff...
Spain: metal industry employers cut sick pay top-ups
To curb absenteeism, Spanish social partners in the metal sector are introducing new clauses into regional collective agreements to reduce the top-up payments made by employers during sick leave...
2 November 2026
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
France: following the post-Covid boom, large companies scale back on remote working
In the post-pandemic context, large French groups multiplied generous remote working agreements before reversing the trend from 2024 onwards. What is the extent of this phenomenon? mind RH...
2
Germany: Employers’ representatives seek to limit the rights of works councils
The Employers' Federation of German Employers' Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände - BDA) published a report at the end of September in which it proposes a...
3
France: Iliad structures its skills management around AI
The news. On 9 April, Iliad (11,600 employees in France), the parent company of telecoms operator Free, concluded an agreement on jobs and career path management with its representative trade...
4
France: National Assembly votes for mandatory bargaining on sexual and gender-based violence
The news. On 8 October, French MPs voted to extend the scope of mandatory annual negotiations to sexual and gender-based violence (SGBV). In practice, in addition to pay, working hours and...
5
France: how CDC Habitat aims to better promote the expertise of its employees
The housing division of the French public group Caisse des Dépôts et Consignations, CDC Habitat (10,800 employees), established new measures on skills in July. They are set out in two agreements...
6
France: La Poste strengthens regional management of jobs and skills
La Poste’s 2026-2028 agreement on the management of jobs, professional pathways and gender diversity in occupations puts the emphasis on supporting mobility and career changes, relying on a...