New minimum wage to benefit employees outside collective agreements

(GermanPolicy.com) – According to a recent study, a higher minimum wage – i.e. an increase to 12 Euros per hour – benefits around 8.6 million employees. Currently, around 30 percent of employees work outside the collective wage and for less than 12 euros, according to the study conducted by the trade union-affiliated Hans Böckler Foundation. The value for those who receive a similarly low hourly wage with a collective agreement is only 9.5 percent.

The wages for those without collective bargaining conditions would go up by an average of 4.1 percent after the introduction of the new minimum wage, the Böckler Foundation study said. This would be an effective support for wage stability and benefit those affected among the workforce who are outside of a collective agreement. Quite importantly, the higher minimum wage is not a deep interference with collective bargaining autonomy. Low wages are paid out particularly in retail, healthcare, building maintenance, gastronomy and social services.

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