Overview

• SPD Secretary-General Matthias Miersch has stated the party will push for a €15 minimum wage through legislation if the independent Minimum Wage Commission does not endorse the increase.
• The CDU/CSU, coalition partners in the government, reject any political interference in the commission's process, emphasizing its autonomy as outlined in the coalition agreement.
• Employer groups, including Gesamtmetall, warn that a €15 minimum wage could lead to economic harm, including business closures, job losses, and increased black-market work, particularly in East Germany.
• Economists remain divided, with the DIW forecasting positive macroeconomic impacts such as higher consumption and productivity, while the Ifo Institute cautions against potential economic strain.
• The Minimum Wage Commission is scheduled to decide on the next wage adjustment by late June 2025, as debates over its role and recommendations intensify within the coalition.