Minimum wage increase in Saxony: Crafts in crisis!

Minimum wage increase in Saxony: Crafts in crisis!

In Saxony there is a planned increase in the minimum wage, which is raising fundamental concerns in the economy. The current minimum wage is 12.82 euros per hour. The president of the Saxon Crafts Day, Uwe Nostitz, has already expressed skepticism. According to his statements, the increase in the minimum wage to 13.90 euros on January 1, 2024 and to 14.60 euros on January 1, 2027 is seen as difficult for craft companies to cope with. These companies are suffering from considerable economic concerns, which makes adjustment appear even more problematic. South German newspaper reports the possible consequence of an increase, which could be felt in the form of increased consumer prices.

The Saxon Chamber of Industry and Commerce (IHK) expresses similar concerns. President Max Jankowsky has assessed the planned increase in the minimum wage to 15 euros per hour as critical. Above all, the tense economic conditions in Saxony, which have been in an acute economic and structural crisis for years, make this adjustment problematic. Companies in the Free State are confronted with high energy costs and cautious consumption. According to the IHK, a minimum wage increase of 17 percent would represent a significant additional burden for East German companies. star highlights that the Independent Minimum Wage Commission will present a recommendation for the next adjustments at the end of June, representing both employers' associations and trade unions.

Political perspectives and challenges

There are differences in opinion on the level of the minimum wage across the political spectrum. While the Union and SPD consider a minimum wage of 15 euros to be achievable in their coalition agreement, the Saxon economic participants show a different perspective. Jankowsky emphasizes that the current minimum wage is already high compared to Europe, especially when income and productivity differences are taken into account. These arguments contribute to the debate about the future design of the minimum wage in Saxony.

The ongoing economic difficulties of companies and the upcoming adjustments to the minimum wage raise the question of how to find the balance between fair wages and sustainable economic stability. This topic remains a central point of discussion among stakeholders in Saxony and could have far-reaching consequences for the entire region.