Overview

• The SPD is advocating for a €15 minimum wage by 2026, aligning with an EU directive requiring statutory wages to reach 60% of median income.
• The Union and employer representatives argue for preserving the independence of the wage commission and warn against political interference in wage-setting.
• Economic experts are divided: the Ifo Institute warns of potential distortions, while DIW and IMK project overall economic benefits from the increase.
• Raising the minimum wage to €15 could double the number of minimum-wage earners to 12 million, benefiting workers but raising concerns about job shifts and apprenticeship disincentives.
• The wage commission is set to make its recommendation in June, with the SPD prepared to legislate if the target is not met.