The term “Mindestlohn” translates to “minimum wage” in English. It refers to the lowest wage that employers can legally pay their employees.
What is “Mindestlohn”?
In Germany, the “Mindestlohn” is a statutory provisionProvision, translated into English as "commission" or "provision," is a term commonly encountered in various contexts within Germany. It often... that sets the minimum hourly wage employers must pay their workers. This measure aims to protect employees from exploitation and ensure they receive fair compensation for their work. The introduction of the minimum wage in Germany was a significant policy change aimed at improving the living standards of low-income workers and reducing wage inequality.
More information about “Mindestlohn”
As of January 1, 2024, the minimum wage in Germany was set at 12.41 euros per hour. This rate is subject to periodic reviews and adjustments by the Mindestlohnkommission (Minimum Wage Commission), a body comprising representatives from employers, unions, and the government. The commission’s recommendations are based on various economic indicators, including wage and price developments[5][7][13].
Related to “Mindestlohn”
Here are some additional terms that are related to “Mindestlohn”:
- Tarifvertrag: A collective agreement between employers and trade unions that can set wages above the statutory minimum wage.
- Arbeitsrecht: Employment law that governs the relationship between employers and employees, including regulations on minimum wage.
- Sozialversicherung: Social insurance systems in Germany, which include health, pension, unemployment, and accident insurance. The minimum wage impacts contributions to these systems.
The introduction and adjustment of the “Mindestlohn” are crucial for maintaining social justice and economic stability in the labor market.