The minimum wage is set by law and every employer is obliged to adhere to this requirement. This is an hourly wage limit that must not be undercut. Normally, the minimum wage is only adjusted and revised upwards irregularly and after lengthy discussions. Due to inflation, however, there is a higher increase than usual.
The development of the minimum wage until 2023
The minimum wage floor – as the minimum wage is also known – has been in place since 2016 and has been repeatedly revised upwards over the years. This is in response to inflation, price increases and the higher cost of living.
As a rule, the minimum wage increase is in the low double-digit cent range. However, the last increases were relatively high:
From the introduction until today
When it was introduced in 2016, the minimum wage was 8,50 euros.
In 2017, the minimum wage rose by 0,34 euros to 8,84 euros.
There was no increase in 2018.
In 2019, the minimum wage was increased by 0,35 euros to 9,19 euros.
In 2020, a further EUR 0.16 was added and the minimum wage rose to EUR 9,35.
The years 2021 and 2022 each have two minimum wage increases, which came into force on January 1 and July 1 respectively.
In 2021, the minimum wage first rose by 0,15 euros and then by a further 0,10 euros to 9,60 euros.
The year 2022 then followed suit, first with 0,22 euros and then with a higher 0,63 euros. This increased the minimum wage to 10,45 euros.
However, the biggest increase will be in 2023, as the current minimum wage is around 12,00 euros. This means an increase of 1,55 euros.
However, this minimum wage increase came into force retroactively on October 1, 2022. Since then, the minimum wage has therefore been at these 12 euros.
There will be no further increase in 2023. A further adjustment is not expected until the beginning of 2024 at the earliest.
To whom does the minimum wage apply?
The minimum wage is always the gross wage. It is therefore the amount before tax. Basically, this already says who the minimum wage applies to: every taxable employee is entitled to the minimum wage and every employer must pay it as a minimum. There is always an upper limit, but the wage must not fall below the lower limit.
However, the Minimum Wage Act defines a few exceptions for which the minimum wage is not binding. These are the following:
- Apprentices
- Minors without completed vocational training
- Voluntary interns with an internship duration of less than 3 months
- Compulsory interns who are still students (e.g. a compulsory internship at vocational schools or universities)
- Self-employed
- Long-term unemployed (in the first 6 months of reintegration)
- Volunteers
There are also collective agreements in some sectors that set their own minimum wage. However, this is only legal if it does not fall below the statutory minimum wage of currently 12.00 euros.
The minimum wage for mini-jobs
The minimum wage also applies to mini-jobbers. However, because the increase is so large, the monthly earnings limit has also been raised. Instead of 450,00 euros, mini-jobbers are now allowed to earn 520,00 euros per month.
This ensures that the previous 40 working hours per month can continue to be worked. With a limit of 450,00 euros, this would have been reached beforehand with an hourly wage of 12,00 euros.
Conclusion
The minimum wage in 2023 is around 12,00 euros and will not change over the course of the year. This wage limit may not be undercut. However, this is a gross amount. A further adjustment is not expected before 2024.
Mini-jobbers are now allowed to earn more per month as part of the minimum wage increase. However, a further increase in the earnings limit is likely to be in the distant future.
