On October 28, 2020, the German Cabinet followed a recommendation made by the Minimum Wage Commission on June 30, 2020, and passed the Third Minimum Wage Adjustment Ordinance. According to this, the statutory minimum wage will be raised in four stages in 2021 and 2022.
A statutory minimum wage of 9.50 euros gross per hour has applied since January 01, 2021. The second increase to 9.60 euros will take effect on July 01, 2021. The third stage of the increase will follow on January 01, 2022 at 9.82 euros, and the fourth stage finally on July 01, 2022 at 10.45 euros.
It was initially disputed whether the minimum wage should be frozen or increased due to the Corona crisis. The Minimum Wage Commission weighed up the pros and cons of unions and employers and unanimously decided to increase the statutory minimum wage in four stages. Among other things, the current employment and competitive situation as well as the development of collective agreements in the recent past were taken into account when setting the level of the minimum wage.