Merkel’s Minimum Wage

Interestingly, German Chancellor Angela Merkel has recently sanctioned Germany’s first minimum wage. It has been set at €8.50 an hour (effectively £7.00 at current exchange rate). The minimum wage is due to be implemented in 2015.

Germany was one of a small group of EU member states that did not have a minimum wage. This was largely due to the fact that wage regulation was conducted via works councils/collective agreements in accordance with the well-established consultation model that has been operative in Germany since post war.

This well-worn route had worked well for the German economy as it successfully rebuffed the economic downturn to a large degree and of course dealt with German reunification.

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This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.


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