Minimum wage rises to 10.45 euros

On October 28, 2020, the Federal Cabinet passed the Third Minimum Wage Adjustment Ordinance, according to which the statutory minimum wage is to increase in four half-year steps to 10.45 euros per hour by mid-2022.

The BMAS press release of October 28, 2020 shows:

Initially, the statutory minimum wage is to be increased to EUR 9.50 per hour on January 1, 2021. Then a gradual increase should take place on July 1st, 2021 to EUR 9.60 gross, on January 1st, 2022 to EUR 9.82 gross and on July 1st, 2022 to EUR 10.45 gross.

With the cabinet decision, the recommendation of the minimum wage commission made up of employers and unions of June 30, 2020 is implemented. The four-stage increase is intended to help distribute the resulting wage cost increases for companies in a sustainable manner and at the same time to constantly improve the minimum protection of employees over the next two years.

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