Minimum Wage: No Job Losses Reported in Germany
Economy / Finance

Minimum Wage: No Job Losses Reported in Germany

The findings have prompted calls from some political factions for further increases to the minimum wage Anne Zerr, a Member of Parliament for the Left party, stated that decent wages do not necessarily correlate with increased unemployment, countering arguments made by employer associations She advocates for a minimum wage of 16 euros starting in 2026, with subsequent adjustments to account for inflation The current minimum wage stands at 1282 euros per hour, scheduled to rise to 1390 euros in 2026

Marcel Fratzscher, President of the German Institute for Economic Research (DIW), suggests there may be room for greater increases than currently proposed He believes a stronger rise in the minimum wage than recommended by the minimum wage commission would likely be feasible without significant losses in employment, leading to considerable gains in income However, Fratzscher cautioned that the point at which a higher minimum wage might begin to negatively impact employment remains difficult to accurately predict