Germany adopts high minimum wage

Last week, the German Bundestag approved the country’s first minimum wage, with strong backing from all key political parties.

The new law will introduce one of the highest minimum wage rates in the world, at 8.50 euros per hour, as well as a minimum wage commission which includes management and labor.

Sectoral bargaining will also be encouraged for industries which have been unrepresented for decades, such as agriculture.

Under new regulations, collective agreements will cover around 80% of German employees, a high proportion compared to the European average of 62% and the United States’ average of just 12%.

The new wage and employment regulations are set to be implemented in Germany in 2015.

Read more here.

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