Increase in the legal minimum wage to 12 euros

On June 30, 2020, the Minimum Wage Commission decided to increase the general legal minimum wage in four stages. This decision was made on 28 October 2020 by the Federal Cabinet in Berlin with a legal provision from Labor Minister Hubertus Heil (SPD).
Furthermore, on February 23, 2022 the federal government approved a bill that provides for the increase of the minimum wage to 12 euros and the increase of the salary limit for mini-jobs to 520 euros. The maximum limit for midi jobs will also be increased from 1,300 euros to 1,600 euros per month.

What minimum wage increases have been decided?

From 1 January 2021 the legal minimum wage went from 9.36 euros gross to 9.50 euros. This rate was then increased to 9.60 euros per hour in a second phase on 1 July 2021. Another raises was available from January 1, 2022 (9.82 EUR). The pending increase is therefore scheduled for 1 July 2022 (10.45 euros). as well as from 1 October 2022 (EUR 12.00). The increase from July to October will be increased once outside of the usual increase phases. One reason is the rising cost of living and housing. Usually the minimum wage is linked to the previous increase in Collective wages adapted in Germany.
The minimum wage commission is expected to take place in the summer of 20203 make the next recommendation on the level of the legal minimum wage.

What is the maximum number of hours per month that mini-jobbers will be able to work in the future?

Thanks to the increase in the minimum wage, in the next two years alone (starting from 2020) employees will receive around 2 billion euros more and the minimum wage will increase from the end of 2020 to 01.10.2022 total 28.34 Percentage.
The graph below shows the development of the minimum wage since its introduction on 1 January 2015. This shows that from 2015 to for the 01.10.2022 an increase in 3.50 euro.

Since the minimum wage is mainly in the area of450/520 EUR forces occur, for each increase (note the rounding!) for this group of employees the following planning hours per month occur:

Change from October 2022

From October 2022, however, the salary limit for mini-jobs will also rise to 520 euros. This would mean that in the future a 520 euro worker will be able to work 10 hours a week.

Minimum wage for holiday workers

Many teenagers and young adults work during the holiday season and help the workforce with daily tasks. In this case it is important to focus on the payment. Holiday workers over the age of 18 also receive the specified minimum wage. The situation is different for employees under the age of 18, as they do not have to pay a minimum wage.

You can find out what else applies to workers during the holidays here.

Adaptation of collective agreements for temporary workers

Temporary workers should also receive more money: this will happen in three phases. The lowest salary bracket will receive an overall increase of 24.1% over the life of the collective bargaining agreement. On 1 October 2022 the salary will rise to 12.43 euros. On 1 April 2023 at 13.00 euros and in the third step at 13.50 euros on 1 January 2024.

For the 2nd salary band there was an overall increase of 19%. In October the salary will rise to 12.63 euros, in April 2023 to 13.20 euros and in January 2024 to 13.80 euros.
The situation is similar for salary groups 2b. Over the duration of the collective agreement, an overall increase of 16% is expected. In October 2022 the minimum wage will be 12.93 euros, in April 2023 it will be 13.50 euros and in January 2024 it will be 14.15 euros.

Consideration of minimum wage and maximum working hours in operational planning

In ours Workforce management solution these can Data for future planning be deposited in advance. This means that in case of need, the Staff shortages manifest themselves in good time and recruiting can timely human resources build.

In the area of Time recording including payroll the corresponding hour accounts are available online. Taking a proactive view of time management within planning prevents time accounts from getting out of hand.

The minimum wage represents a lower limit. In your company it is possible to flexibly define different contract types or weekly working time models, including the maximum number of hours per month or the maximum number of working days per year.