The German economist Achim Truger has made a strong case for increasing the minimum wage to €15 per hour by 2026, suggesting that government intervention may be necessary if the Minimum Wage Commission fails to meet this target. In an interview with industry publication POLITICO, Truger emphasized the urgency of this matter, calling on the coalition government to legislate the wage rise if the commission does not comply.
“Should the Minimum Wage Commission set a lower figure, the coalition must step in and raise the minimum wage to €15 by law,” Truger stated during his discussion with other experts including Laura Hülsemann, Jürgen Klöckner, and Romanus Otte.
He clarified that while the commission can handle the finer details of wage adjustments in the future, the fundamental decision rests with the political spheres, as these matters do not involve traditional collective bargaining.
Shifting Political Dynamics on Minimum Wage
This marks a significant shift, as Truger, a member of the expert council, aligns himself with calls from the Green Party, the Left Party, and segments of the Social Democratic Party (SPD)—all advocating for a legally enforced increase. This stance, however, is met with resistance from the Christian Democratic Union (CDU), which opposes government intervention.
Despite the coalition agreement highlighting the independence of the tariff commission, it also stated that a legally binding minimum wage of €15 should be achievable by 2026. SPD leader Lars Klingbeil affirmed in May that the minimum wage would rise to this amount, prompting immediate dissent from CDU leader Friedrich Merz, who countered that this had not been part of the agreement.
Implications of a Wage Increase
The decision from the Minimum Wage Commission is expected by June 30, and the current minimum wage stands at €12.81. Raising it to €15 would represent a 17% increase, positioning Germany to have the highest minimum wage among industrialized nations.
Concerns have been raised from the industrial sector regarding the potential impact of this wage increase. Small and medium-sized enterprises are particularly anxious about the rise in labor costs associated with the new minimum wage.
Truger justified his demand by pointing out that inflation has effectively diminished the value of previous wage increases. He noted, “With €15, there may be some less expensive restaurants, but not less work.” His comments highlight a belief that job availability would not diminish despite the wage hike.
Truger’s call for action diverges from some of his colleagues within the expert council, particularly Veronika Grimm, who has recently opposed such an increase. In contrast, Monika Schnitzer maintained that the minimum wage adjustments should be managed solely by the commission, avoiding political involvement.
As the narrative unfolds, the discussions surrounding Germany’s minimum wage are set to remain a hot topic, reflecting broader debates on economic sustainability and labor rights.