Minimum Wage Debate Settled According to Chancellor Merz Amid Coalition
Coalition discussions on implementing a minimum wage have reached their conclusion, according to Chancellor Merz.
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Chancellor Friedrich Merz of the CDU party recently stated that the debate within the coalition about the minimum wage has been settled following the Minimum Wage Commission's decision to propose a two-stage increase. Merz shared his thoughts in Berlin, stating, "I've got no beef with this plan in principal." He further mentioned that this topic is unlikely to cause any more coalition discussions. The SPD's co-leader, Lars Klingbeil, had previously pushed for a minimum wage of €15.
The Minimum Wage Commission recommended that the current statutory minimum wage, €12.82 per hour, be increased in two phases. The first step will raise it to €13.90 per hour starting January 2026, and an additional €0.70 per hour increase will kick in by 2027, making the minimum wage €14.60 per hour by then. Merz expressed satisfaction with the Commission's proposal, saying, "Bingo, exactly what we fought for!" He believes the Commission based its proposal on objective data and figures, suggesting it's the right approach.
Once the proposed increase is finalized and evaluated, Merz emphasized that it should be made legally binding.
Sources: ntv.de, afp
Enrichment Data:- As of January 2025, Germany's minimum wage stands at €12.82 per hour. The government-approved Minimum Wage Commission wants to increase this rate gradually. The first rise will take effect in 2026, hitting €13.90 per hour, with another €0.70 increase in 2027, bringing the minimum wage to €14.60 per hour by 2027[1][4].- This planned increase would make Germany's minimum wage one of the highest in the European Union, second only to Luxembourg[4].- The increases reflect a focus on promoting workers' income growth and upholding social partnership principles[4].- The coalition government's stance shows cooperation, as the SPD, which is now the Jr. partner to the CDU, had advocated for raising the minimum wage prior to the February elections. Since the Commission's decision, CDU general secretary Carsten Linnemann has acknowledged the consensus, highlighting effective social partnership and collective bargaining as the best means for wage setting[4].
The Chancellor, Friedrich Merz, has announced that the minimum wage debate within the coalition, a matter of policy-and-legislation, has been settled following the Minimum Wage Commission's proposal for a two-stage increase. This settlement is significant in the larger context of politics and general news, as it demonstrates cooperation between coalition partners, including the CDU and SPD, during Merz's tenure.
Once the proposed increase is finalized and made legally binding, it will position Germany's minimum wage among the highest in the European Union, falling second only to Luxembourg. This move aligns with the government's focus on promoting workers' income growth and upholding social partnership principles.
