Why is the minimum wage increasing?

Why is the minimum wage increasing?

The increase in the minimum wage is intended to contribute to fair and functioning competitive conditions by setting a wage floor to counteract cut-throat competition through the lowest wages.

Who gets the new minimum wage?

§ 1 paragraph 1 MiLoG states the following: Every employee is entitled to payment of wages at least equal to the minimum wage by the employer. The exceptions to the minimum wage are defined in the Minimum Wage Act (MiLoG).

Who has to pay minimum wage construction?

In principle, the minimum wage of the job applies to employees in the construction industry. If employees are deployed to another job, they retain the right to the minimum wage of the job or their wage group if the minimum wage of the other job is lower.

To whom does the statutory minimum wage apply?

In principle, the statutory minimum wage applies to all employees over the age of 18, including, for example, pensioners, mini-jobbers, foreign employees, seasonal workers, employees posted to Germany and schoolchildren of legal age. However, the Minimum Wage Act (MiLoG) also provides for exceptions.

What is included in the 2020 minimum wage?

Increases in industry minimum wages as of January 1st, 2020: Industry minimum wage so far Industry minimum wage from January 1st, 2020 Roofing trade unskilled 12.20 euros * 12.40 euros * journeyman 13.20 euros * 13.60 euros * building cleaning trade

What counts towards the minimum wage?

In summary, the following remuneration components can be counted towards the statutory minimum wage: piecework bonuses/performance bonuses for achieving certain qualitative or quantitative work results per unit of time. Allowances for dirt and hazards for work under difficult conditions.

What is the monthly minimum wage in 2020?

Current minimum wage: The statutory minimum wage for 2021 is 9.50 euros in the first half of the year and increases in the second half of the year, i.e. to 9 from July 1, 2021, the minimum wage was 9.35 euros.

What does the minimum wage mean for employers?

As an employer, you have been obliged since January 1, 2020 to pay all employees an hourly wage of at least EUR 9.35 (gross) per hour.

What is the minimum hourly wage in Germany?

The new minimum wage of €9.35/hour gross has been in effect since January 1, 2020.

How did the minimum wage come about in Germany?

introduced minimum wage? A general, statutory minimum wage protects employees in Germany from unreasonably low wages. The statutory minimum wage thus also contributes to fair and functioning competition.

Why is there a minimum wage?

With the minimum wage, the federal government wants to prevent people from not being able to live on their income despite a full-time job. Even with a minimum wage of 8.50 euros per hour, an employee working a 38-hour week earns a monthly salary of around 1,500 euros. The minimum wage is mandatory.

Is the minimum wage in Germany gross or net?

Since January 1st, 2019, you have received EUR 9.19 instead of EUR 8.50 as the hourly minimum wage. Whether you receive the money gross or net is stipulated by law. We will explain to you whether you are still entitled to deductions.

What do I earn if I work 20 hours a week?

Hourly wage = €8.50 = Average monthly wage for a 40-hour week = €1,473 Hourly wage = €14.00 = Average monthly wage for a 20-hour week = €1,127 Hourly wage = €20.00 = Average monthly wage for a 30th -hour week = €2,600

When will the minimum wage be increased again?

By July 1, 2022, the statutory minimum wage will increase to EUR 10.45 gross – according to the recommendation of the Minimum Wage Commission. In 2020 it is 9.35 euros gross. The statutory minimum wage will be increased in four steps by July 2022 to EUR 10.45 gross: Increase to EUR 9.50.

To whom does the statutory minimum wage not apply?

Compulsory interns, young people under the age of 18 who have not completed vocational training, trainees, volunteer workers, the long-term unemployed, freelancers and the self-employed do not receive a minimum wage.

Who gets minimum wage in 2020?

INITIAL AND CONTINUING EDUCATION. A uniform nationwide minimum wage of at least 15.26 euros applies to the approximately 30,000 employees in training and further education. From January 1st, educational staff will receive EUR 16.39, educational staff with a Bachelor’s degree.

What happens if you pay below minimum wage?

If the employer does not pay the minimum wage, there are severe penalties of up to 500,000 euros. If employers want to protect themselves so that they do not have to be liable for their subcontractors whose salaries they do not know, they can only do this with a security deposit or a guarantee.

How much money does a cleaning lady get?

13 euros to 26 euros per hour, which you have to shell out for a cleaning worker in a private household per hour. From 2021, the minimum wage in Germany will be EUR 9.50. So you can’t pay less.

What is the standard wage for cleaners?

At the turn of the year, the minimum wage for workers in monument, facade, building cleaning and housekeeping will rise from the current 1,555.34 to 1,598.11 euros. The gross hourly wage will be increased from EUR 8.98 to EUR 9.23.

How much does a hairdresser earn per month?

Due to the current minimum wage of 9.19 euros per hour, full-time hairdressers (37.5 hours per week) earn a gross salary of almost 1400 euros per month.