Germany increases its minimum wage by 25 percent
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Roshan Amiri
- . November 27, 2021
- . Update: November 29, 2021 1:16 pm
Germany–After a lot of thought and consideration of the status of migrant workers in the nation, Germany has decided to increase the minimum wage by 25 percent to 12 Euros. The decision will cater to nearly two millions workers who have been part of Europe’s largest economy.
On Wednesday, Three German political parties came together to form a new government which essentially led to the succession of Angela Merke as the chancellor and appointment of left-leaning Social Democrat Olaf Scholz. It was after a battle of lengthy coalition that this decision was taken.
With the new government in charge, the country has planned to raise the minimum wage to €12 ($13.46) an hour, from the current rate of €9.60 ($10.77) an hour. This is a profitable matter for the migrant workers as it could boost the particular section.
Post the announcement of the wage increase, UBS economist Felix Huefner stated that it will be essential in boosting overall wage growth. However, the German central bank is against this decision saying that the situation is ‘worrying’ for the economy. “It said it would have a knock-on effect on wages for higher earners,” a report said.
The decision, a parliament member of the European Union Agnes Jongerius said, “During the previous crisis, lowering minimum wages and dismantling sectoral collective bargaining was the harsh medicine prescribed to many member states.”
This move only increased the popularity of the present government as the migrant workers minimum wage was already one of the highest in Europe and now with this announcement, the migrant workers will be able to further trust in the government.
