Germany Raises Minimum Wage in 2017

An independent wage commission in Germany has raised the minimum wage in the country. After careful deliberations on the wage index, the commission has recommended a four percent increase in the minimum wage. The revised wage has increased by 34 cents to 8.84 Euros from the earlier 8.5 Euros per hour.


The German Cabinet has already approved the recommendation, and new wages were applied on January 1, 2017. This increase has impacted around four million low-skilled workers in Germany. As per the country’s labor law, the minimum wage review is done every two years. And, the next recommendation is planned for January 2019.

Trade union workers and employers, in general, have welcomed the decision. But a few social organizations are not convinced and want a steeper hike in the recommendation. While some media houses like Passauer Neue Presse have a contrary view on this. As per their report, the increase in wages would cost companies in Germany around 1 billion Euros which will lead to price rise, and job cuts. The government has so far rejected the skepticism submitted by the naysayers.

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