Germany Minimum Wage Tender

The Federal Ministry of Labor and Social Affairs published the evaluation of the Minimum Wage Act today. The evaluation results show that the minimum wage is effective and has noticeably increased employee protection. Hourly wages in the lowest wage range have increased significantly the low-wage sector has declined slightly and the wage distribution has become fairer. The results also show that unemployment did not increase the competitiveness of companies was not impaired and the overall economic price level was not influenced.Federal Minister Hubertus HeilThe positive effects of the minimum wage show that it has proven itself. The report also shows that the minimum wage has not yet reached everyone and that in many cases it is withheld from workers entitled to a minimum wage. The minimum wage and its specific amount must be better known. It has also been shown that customs checks and documentation requirements are absolutely necessary for employers. And the minimum wage must continue to rise and be developed. I will make suggestions on this in January.Even if many know that there is a minimum wage only a few know its exact amount which is currently 9.35 euros gross and will be 9.50 euros gross for one hour of work from January 1 2021. In addition to more stringent controls this is an important factor in enforcing the minimum wage across the board. For the minimum wage evaluation Prognos AG has one on behalf of the BMAS Overall reportwhich systematically evaluates and summarizes the research results from the BMAS research projects on minimum wage research the reports of the minimum wage commission and relevant third-party research from the years since its introduction. In addition to quantitative causal analyzes minimum wage research also includes descriptive and qualitative studies and uses various data bases. Analogous to the central objectives of the introduction of the minimum wage the effects of the general minimum wage on the protection of employees on the labor market and on competition were presented. In addition the methodological aspects of minimum wage research were examined as well as the control and enforcement of the minimum wage.