Minimum wage, pensions: Bärbel Bas sparking controversy

(de-news.net) – Federal Minister of Labor Bärbel Bas (SPD) has sparked controversy within the governing coalition by proposing that self-employed individuals and civil servants contribute to the pension system and pressuring the Minimum Wage Commission to ensure a 15-euro hourly wage—suggesting political intervention, if necessary.

Although the CDU, CSU, and SPD agreed to the wage increase in the coalition contract, the decision was meant to be left to the independent commission. Currently, the wage stands at 12.82 euros per hour, and CDU leader Friedrich Merz emphasized that no automatic increase should be expected. Bas, however, suggested that if the commission recommended only 13 euros, political action might be required. However, no intervention would be necessary for a near-15-euro figure. She expressed confidence that intervention would not be needed, expecting the commission to uphold its procedural standards. The commission, consisting of six voting members and two advisors, follows wage and labor market trends, leaving limited room for flexibility. While the governing coalition previously bypassed the commission to legislate a 12-euro wage in 2022, the Union has since ruled out similar political interference.

Bas’s pension reform proposal has already faced opposition from coalition partners. CSU politician Alexander Hoffmann dismissed it as an attempt to impose outdated SPD policies. Business representatives, including Christoph Ahlhaus of the German Association of Small and Medium-Sized Businesses, criticized the idea as financially ineffective, while civil service representatives warned that it could lead to salary adjustments and increased employer costs.

In contrast, Left Party leader Susanne Schwerdtner praised the initiative as a move toward universal pension reform, arguing it could improve financial security for retirees. The Social Association VdK also welcomed the proposal, contending that excluding certain groups from contributions was outdated. Nonetheless, CDU, CSU, and FDP leaders remained firmly opposed. Wolfgang Kubicki of the FDP argued that such a systemic change would require constitutional amendments and was financially impractical, instead advocating for a stock-based pension model to address demographic shifts.

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