Minimum wage of 15 euros: danger to the economy or salvation for everyone?

Minimum wage of 15 euros: danger to the economy or salvation for everyone?

The discussion about the legal minimum wage in Germany has reached new dimensions. The SPD plans to enforce a minimum wage of 15 euros, putting companies on alert. They fear negative effects on the economy and rising costs of living. The existing minimum wage is currently 12.41 euros per hour, and there are already proposals to increase it to 14 euros. Studies suggest that such an increase could have profound consequences for the economy and labor markets. A study by the Institute for Labor Market and Occupational Research (IAB) shows that 19% of companies expect a decline in employment if the minimum wage rises to 14 euros.

The question of whether the economy can cope with an increase to 15 euros remains controversial. According to research by Plusminus, the current minimum wage is considered too low, but there are considerable doubts about the viability of a further increase. Small and medium-sized companies in East Germany in particular face economic challenges, as over 50% of companies would be directly affected by an increase. In this region, 25% of companies expect serious consequences, which only applies to 18% of cases in West Germany.

Political debates and different positions

The political debate within the traffic light coalition (SPD, Greens, FDP) is divided. While the SPD and the Greens support an increase in the minimum wage, the FDP is cautious and would first like to wait for the minimum wage commission's decision. This commission is expected to develop a proposal for the minimum wage from 2026 by mid-2025. The unions argue strongly for an increase in order to strengthen purchasing power and combat poverty.

The economic associations, however, warn of possible impairments in competitiveness and possible job cuts. Job requirements are also increasingly being brought into focus by the EU directive, which sets minimum wages at at least 60% of the median income. In addition, customs ensures that controls are intensified to ensure compliance with minimum wage laws.

In East Germany, 58% of companies employ people who earn less than 14.41 euros; in West Germany it is also 58%. This highlights the precarious situation of many employees and the tension between economic necessity and social responsibility. The debate about the minimum wage therefore remains controversial and will remain our topic in the political arena and in business circles. HR InfoRadio and Manager sheet report in detail about the developments and their consequences.