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Germany's Path to €15 Minimum Wage by 2026 Faces Renewed Political Debate

SPD reaffirms commitment to wage increase as CDU and employer groups express concerns over economic impacts.

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Auf einer Wahlkampfveranstaltung halten SPD-Mitglieder Schilder mit Mindestlohnforderungen hoch. Das könnte der Wirtschaft schaden.
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Der Koalitionsvertrag in Papierform

Overview

  • Germany's coalition agreement confirms the goal of raising the minimum wage to €15 by 2026, as reiterated by SPD officials.
  • Over six million workers currently earn the statutory minimum wage of €12.82, with a significant number being women and residents of East Germany.
  • CDU leader Friedrich Merz emphasizes the independence of the Mindestlohnkommission, suggesting no automatic increase, prompting pushback from SPD and trade unions.
  • Employer associations, particularly from the Mittelstand, warn that rapid wage hikes could strain financial capacities and harm competitiveness.
  • The independent Mindestlohnkommission, tasked with biennial wage recommendations, remains central to the decision-making process, balancing economic trends and collective bargaining data.