Major northern German businesses predict a minimum wage of 15 Euros starting from June 27, 2025, at 6:16 a.m.
In the heart of North Germany, businesses in the metal and electrical sector are taking the proposed increase in the minimum wage with a pinch of salt. In a survey conducted by several employers' associations, a calm 64% of companies responded to the potential rise in the minimum wage to €15 per hour with a shrug. Although 35% foresee negative consequences, only a meager 1% anticipate financial improvement.
The Minimum Wage Commission has made waves with a proposed adjustment to the current minimum wage of €12.82 per hour, setting their sights on an ambitious goal of €15. The Germans Trade Union Confederation had even called for an even higher figure of €15.27 per hour by as far as 2026. Employers have sounded the alarm bells about significant economic repercussions that a substantial increase could bring.
Interestingly, opinions about the proposed increase vary across North Germany's federal states. For instance, 55% of businesses in Mecklenburg-Vorpommern predict negative outcomes, while just 13% in Bremen share this sentiment. Hamburg comes in at 24%, Schleswig-Holstein at 33%, and Lower Saxony at a close 37%. Some companies foresee positive consequences in Mecklenburg-Vorpommern and Schleswig-Holstein, with 2% and 1% respectively.
The proposed hike in the minimum wage also influences citizens' income payments. In 2021, the government disbursed around €7 billion to approximately 826,000 working people due to insufficient income[3]. This marked the first increase in the number of recipients since 2015. As a response to the Left Party inquiry, these figures clearly display a growing need for financial assistance.
The minimum wage in Germany was introduced back in 2015, setting the initial rate at €8.50 per hour. Since then, the number of recipients has steadily decreased from around 1.2 million to a slightly over 796,000 people in 2023. However, estimates show a projected increase for 2024.
Warning bells are ringing, and the managing director of Nordmetall and AGV Nord, Nico Fickinger, urges the Minimum Wage Commission to focus on the development of wages and not lose sight of the realities faced by small and medium-sized businesses[3]. With little room left to offset increased wage costs, these businesses could face challenges such as higher prices for consumers or layoffs.
In the realm of the finance and business sector, discussions about the potential impact of the proposed minimum wage increase to €15 per hour, from the current €12.82, are making waves across Germany. Some merchants and employers, particularly in regions like Mecklenburg-Vorpommern and Schleswig-Holstein, foresee that this increase could positively affect their workers' income, while the majority in these regions predict negative consequences for their businesses.
