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Australia minimum wage to rise to EUR 10.45 by 2022

21:05  30 june  2020
21:05  30 june  2020 Source:   dw.com

15 cents more minimum wage - 2022 increase to EUR 10.45

 15 cents more minimum wage - 2022 increase to EUR 10.45 © Reuters / LEONHARD FOEGER Two Euro coins are seen at the Money Service Austria company headquarters in Vienna Berlin (Reuters) - The statutory minimum wage in Germany is to be increased by 15 at the beginning of 2021 Cent rise to 9.50 euros, but in three further steps to reach 10.45 euros by mid-2022. This was recommended on Tuesday by the minimum wage commission from employers and the unions. This affects around two million employees.

The proposal for this fell unanimously in the commission, which is made up of employers and unions alike. Given the corona crisis, this gives hope. Minister of Labor Heil is already looking to the future.

Typische Berufe im Mindestlohnbereich: eine Reinigungskraft © picture-alliance / dpa / M. Kappeler Typical professions in the minimum wage area: a cleaner

The statutory minimum wage in Germany is to increase in four stages by July 1, 2022 from the current EUR 9.35 to EUR 10.45. The responsible commission recommends this in a decision submitted in Berlin. The vote on the committee, which includes representatives from trade unions, employers and academia, was unanimous. The federal government still has to implement the future minimum wage by ordinance. It is usually based on the Commission's proposal.

Business and trade unions argue about minimum wages

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Specifically, according to the recommendation, the minimum wage should initially rise to EUR 9.50 on January 1, 2021. A second increase to EUR 1.60 is to follow on July 1, 2021, and a third to EUR 9.82 on January 1, 2022. The fourth stage provides for an increase to EUR 10.45 on July 1, 2022.

Typische Berufe im Mindestlohnbereich: ein Paketzusteller © picture-alliance / S. Simon Typical professions in the minimum wage area: a parcel delivery agent minimum wage for five years

The statutory minimum wage was introduced in January 2015 at an amount of EUR 8.50 gross per hour. After several boom years, the recommendation of an increase was also eagerly awaited in view of the economic slump due to the corona pandemic. Employers had warned against excessive increases in the face of the burdens of many companies during the crisis. The unions, however, called for a noticeable increase.

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In principle, the independent commission made up of representatives of employers, trade unions and academics is guided by the past development of wages. According to legal stipulations, the "total consideration" should then bring together the minimum protection of employees, fair conditions of competition and the major goal of not endangering employment. There is a certain amount of leeway in what exactly is included in the calculation.

Arbeitsminister Hubertus Heil bei einer Bundestagssitzung (Archivfoto) © picture-alliance / dpa / R. Hirschberger Minister of Labor Hubertus Heil at a session of the Bundestag (archive photo) Heil is aiming for a mark of twelve euros

Federal Minister of Labor Hubertus Heil praised the target increase as good news for around two million employees. The minimum wage is a question of fair performance, but also of economic reason, said the SPD politician in Berlin. At the same time, he announced proposals for reform in autumn. Heil criticized that the lower wage limit is currently only 46 percent of the average income. The benchmark of twelve euros per hour is therefore "good orientation".

The

statutory minimum wage applies to all adult employees - except for the long-term unemployed after starting work in the first six months. It also does not apply to trainees, people with mandatory internships or internships of less than three months. In addition, there are minimum wages in several industries that are above the lower wage limit.

sti / ml (afp, dpa, epd, kna)

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