Statutory minimum wage rises again

On October 28, 2020, the Federal Cabinet followed a recommendation made by the Minimum Wage Commission on June 30, 2020, and adopted the Third Minimum Wage Adjustment Ordinance. Accordingly, 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 been in force since January 01, 2021. The second increase to €9.60 will take effect on July 01, 2021. The third stage of the increase will follow on January 01, 2022 with 9.82 euros, and the fourth stage finally on July 01, 2022 with 10.45 euros.

Initially, it was disputed whether the minimum wage should be frozen or increased due to the Corona crisis. The Minimum Wage Commission weighed the pros and cons of unions and employers and unanimously decided to increase the statutory minimum wage in four stages. In setting the level of the minimum wage, account was taken, among other things, of the current employment and competitive situation as well as the development of pay scales in the recent past.

The Federal Government: The statutory minimum wage increases