Germany: only 2.2 million of employees are covered by sectoral minimum wage negotiated by the social partners

Minimum wage is not yet in force in the temporary sector.  The WSI Institute lists two types of sectoral minimum wages: those that are mandatory for all businesses in one sector via the “Posted Workers Act” (Arbeitnehmer-Entsendegesetz) and those made compulsory via the “Act on the Supply of Staff” (Arbeitnehmer-Überlassungsgesetz).  Reinhard Bispinck, author of the study, told Planet Labor that these two possibilities come from political disagreements, particularly the opposition of the liberal party (FDP) to the introduction of minimum wage in the temporary sector.  To introduce it, the coalition parties therefore decided to amend the “Act on the Supply of Staff” (see our dispatch No.  110201).  “However, in both cases, the procedure is quite similar.  Only the legal framework is different” the researcher explained, adding that, unlike what Minister of Employment Ursula von der Leyen said when the German labor market opened to eastern European workers, minimum wage in the temporary sector is not in force yet.  “The statutory requirements for its introduction were met but the government hasn’t adopted the decree making it compulsory” Bispinck declared.  This salary should amount to €7.79 in western Germany and €6.89 in the east.