“The timing for a higher minimum wage couldn’t be better” – Economy


This Saturday it rises minimum wage from 10.45 to twelve euros an hour, more than six million employees receive significantly more money. The federal government is thus fulfilling a key election promise made by Olaf Scholz (SPD), Labor Minister Hubertus Heil (SPD) praised the increase as an “expression of performance-based justice and respect for good work”. But there is also strong criticism. At the same time, the mini-job limit will be raised from 450 to 520 euros. What sufferers and experts say about it.

The employees

“For me, the minimum wage will rise by a little more than two euros this year. That sounds good, but I also have more deductions on my payslip – and everything is getting more expensive. Who knows where this will lead. I’ll have to see first , which comes to me from the higher hourly wage. The work in the catering trade is just not well paid. In my part-time job I currently work 120 hours a month, in the hotel kitchen, I prepare the buffet for breakfast or lunch. The new minimum wage won’t make me any more money, because I only work up to a certain income, otherwise part of the wages will be deducted from my widow’s pension. So I’ll stay under this limit. Instead, I’ll have more free time, which is also worth something “I will do even more for animal protection, I will go hiking more often. Financially, the twelve euros are of course more worthwhile for the full-time people. The young colleagues in our company are already euphoric isch, they are happy that there is more money. I, on the other hand, have to be careful not to work too much.”

Job market: Katja Schröder-Stüllenberg, 64, works at minimum wage in a hotel near Bad Kreuznach in Rhineland-Palatinate.

Katja Schröder-Stüllenberg, 64, works for minimum wage in a hotel near Bad Kreuznach in Rhineland-Palatinate.

(Photo: private)

The Entrepreneur

“For us, the higher minimum wage is a heavy burden, it’s going up for the third time this year – and with it our staff costs in the hotel and restaurant. And that in difficult times anyway: energy is also becoming more expensive for us, as is food, even the laundry demands higher prices. It will be difficult to compensate for this by raising the prices ourselves. Especially in times of crisis like these, the guests stay away quickly. I will not have to lay off any employees for this reason, but we will have to focus. Focus more on celebrations, for example and less on coffee and cake in the afternoon, which only a few people come to anyway. Other companies are in a similar situation, a catering trade that is open all the time will be the exception in the future. For the remaining times, that means more work for the employees. But we will be different can’t solve that. In addition, the qualified people no longer earn as much as the unskilled. Since m ask yourself: Is an apprenticeship still worth it? So we will also have to talk about more money with employees who earn above the minimum wage. I understand that people in this situation get paid more. But not for these politically fixed twelve euros. In the next election campaign, politicians will demand even higher minimum wages. It’s going to be a competition.”

Job market: Lars Schwarz, 45, runs a hotel and restaurant near Rostock and is president of the Dehoga restaurant association in Mecklenburg-Western Pomerania.  There, the proportion of minimum wage earners is nationwide the highest.

Lars Schwarz, 45, runs a hotel and restaurant near Rostock and is president of the Dehoga restaurant association in Mecklenburg-Western Pomerania. There, the proportion of minimum wage earners is nationwide the highest.

(Photo: Dehoga MV/oh)

The economy

“The time for a higher minimum wage could not be better. Right now, with rising prices, it will help many people. Employees who earn little are already up to their necks in view of the high energy prices. There are higher ones wages part of the balance. I was skeptical when the minimum wage was introduced in 2015, I expected more unemployed people. But I have changed my assessment, also in light of the research on the subject. I don’t expect the higher minimum wage to cost jobs. Research shows: Either the companies pass the higher prices on to the customers. If they can’t do this, they increase their productivity, for example by automating more. And that’s exactly what we need now because we have a shortage of workers in Germany. That is why people find another job comparatively easily. The higher minimum wage will increase inflation somewhat. On the other hand, due to the price increase, the real increase in wages is no longer as high. The problem with the legislative package is the expansion of mini-jobs. Significantly more women now work than before, but often part-time, although it would often be better if they worked full-time. This is also due to the mini-jobs with their lower social security contributions, they make it less attractive to switch to full-time employment.”

Labor market: Monika Schnitzer, 61, is a member of the Advisory Council, the body of the "economy" advises the federal government.  Schnitzer is a professor at the Ludwig Maximilians University in Munich.

Monika Schnitzer, 61, is a member of the Advisory Council, the panel of “economic experts” who advises the federal government. Schnitzer is a professor at the Ludwig Maximilians University in Munich.

(Photo: —/Sachverständigenrat/dpa-tmn)

The author

“People on minimum wage are now getting a lot more gross, and they urgently need that. But inflation will eat it up, at least that’s how it is for those I accompanied for my book and for my most recent television documentary. They give a quarter or one third for groceries alone. And the costs for this have risen even more than the general prices. Of course, the state is also relieving them elsewhere, one will have to calculate thoroughly what is left in the sum together with the higher wages. In any case, many are afraid that the government is now expanding mini-jobs, which affects women in particular – and that’s bad mini job is the way to poverty in old age, not even 2000 euros a month are enough to get an adequate pension later. The mini-jobs are not a smart model. It is good that we are now politically more concerned with the lower middle class. This is not the fringe of society, this is millions. In recent years, these people have had the feeling that things are getting worse and worse for them. They long for economic security. Something is actually happening with the minimum wage, but because of the rising prices, their longing is not fulfilled. This is tragic.”

Job market: Julia Friedrichs, 42, is an author and journalist.  Her bestseller was published last year "working class  Why we need work from which we can live".

Julia Friedrichs, 42, is an author and journalist. Her bestseller “Working Class. Why We Need Work We Can Live From” was published last year.

(Photo: Jürgen Heinrich/IMAGO)



Source link