Böckler Foundation on inflation: Higher minimum wage demanded

If the experts at the Hans Böckler Foundation have their way, the responsible commission should raise the minimum wage quickly. Inflation makes an adjustment necessary.

The extraordinary increase in the minimum wage to twelve euros per hour was a step forward, but it is not enough Photo: imago

DUSSELDORF afp | Labor market experts from the Hans Böckler Foundation have advised the Minimum Wage Commission to make further rapid increases. The extraordinary increase to twelve euros per hour last year was progress, but it was not enough, the researchers at the union-affiliated foundation said on Wednesday. Even in view of the persistently high inflation, there should be “no time for a breather”.

On the one hand, the experts pointed out that “the negative consequences for the labor market that many feared have not materialized” since the statutory minimum wage was introduced in 2015. At the same time, even with the extraordinary increase, the “low wage threshold” set by the Federal Statistical Office at EUR 12.50 was not even reached.

The reference values ​​resulting from the EU minimum wage directive are also significantly higher: “50 percent of the average or 60 percent of the average wage, the median wage, would currently correspond to EUR 13.16 or EUR 13.53,” the experts explained *Inside. So there is still room for improvement “if a lower limit that secures a livelihood is to be reached and maintained”.

The Böckler experts “urgently” advise the Minimum Wage Commission to pay particular attention to inflation, since general inflation hits low-paid employees particularly hard. “The minimum wage should be adjusted accordingly at least once a year.” Incidentally, this is also stipulated by the EU directive.

Proposal for a summer raise?

The independent Minimum Wage Commission currently submits a proposal to the government to adjust the minimum wage every two years. The next proposal is expected in the summer.

The commission consists of three representatives sent by the employers, three trade unionists, the chairman and two non-voting scientists. According to the law, it is their job to carry out an “all-round assessment”.

The specified amount is intended to “contribute to an appropriate minimum level of protection for employees, enable fair and functioning competitive conditions and not endanger employment”. In doing so, the Commission orients itself “on the trail of the tariff development”.