Germany may become 22nd EU state with federal minimum wage

Germany News.Net Sunday 6th July, 2014

BERLIN, Germany - Germany's parliament has voted in favour of a bill that would see the country institute a federally-mandated minimum wage.


The new law would come into effect on January 1st, 2015 if it is approved by the upper house of parliament and would force employers across all sectors of Europe's biggest economy to pay at least 8.50 euros (USD $11.50) per hour.

Most wages in Germany are traditionally set in talks between companies and unions, but new research by the government has shown that women are at the greatest disadvantage in this system. Women make up around a third of 3.7-million Germans that will benefit from the bill.

If the new legislation is passed, Germany will become the 22nd European Union member state to introduce a statutory minimum wage. However, as one of the most productive leading economies in the world, Germany risks losing its competitive edge and as a result, some business leaders worry exports may suffer.

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