Minimum wage dispute comes to a head: decision expected on June 27th!

Minimum wage dispute comes to a head: decision expected on June 27th!

In Germany, the decision on a possible increase in the minimum wage is imminent. The Minimum Wage Commission will present its results on June 27, 2025, but the conditions for an agreement appear to be anything but stable. According to a recent report from fr.de The unions and the SPD are calling for an increase in the minimum wage to 15 euros per hour. This could be of great importance for many employees in Germany, after all, the current minimum wage is 12.82 euros, since the last increase of 82 cents two years ago.

The debate surrounding the minimum wage is not new. As early as 2022, employers have made it clear that they are skeptical about an increase and are warning of possible job losses. In particular, the general manager of Gesamtmetall, Oliver Zander, sees significant economic risks with a minimum wage of 15 euros. In contrast, the German Social Association is even calling for a minimum wage of 15.12 euros, while the German Trade Union Confederation (DGB) is demanding 15.27 euros for 2026 zdf.de reported.

The role of the Minimum Wage Commission

The Minimum Wage Commission plays a crucial role in this process. It was founded in 2015 to review the minimum wage level every two years. The commission consists of a chairman and several permanent members of the social partners and meets at least three times a year. The committee is tasked with evaluating the effects of the minimum wage on the labor market and competitive conditions. Particular attention is paid to the protection of employees, as the official website of the BMAS explained.

There is currently speculation that without an agreement, the Minimum Wage Commission will not remain in its current form. A previous scandal in June 2023, in which chairwoman Christiane Schönefeld's support of employer representatives was met with strong public criticism, reinforces the concerns. It is therefore expected that an agreement between politics and business is essential to ensure the continued existence of the Commission.

Forecasts and political tensions

Politicians do not agree. The SPD emphasizes that the minimum wage should be at least 60 percent of the median income and envisages an increase by 2026 at the latest. This means that a minimum wage of 15 euros could become a reality by 2026. The Union, on the other hand, is not very forthcoming and rejects a political minimum wage. These differences could lead to additional tensions within the traffic light coalition, as recent reports indicate.

It remains to be seen whether the federal government will be able to present a viable solution in the near future. However, leading economic institutes are predicting a recovery in the economy next year, which could potentially influence the negotiation framework. If an agreement is reached on June 30th, this could provide new impetus for labor market policy in Germany and bring about significant changes for employees.