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26-11-2021, 04:29 PM
By Julia Horowitz, CNN Business
Updated 1311 GMT (2111 HKT) November 25, 2021
Three German political parties agreed to form a new government on Wednesday, with left-leaning Social Democrat Olaf Scholz set to succeed Angela Merkel as chancellor following lengthy coalition negotiations.
As part of the coalition agreement, the country plans to raise its minimum wage to €12 (US$13.46) an hour, from the current rate of €9.60 (US$10.77) an hour.
The move could boost the income of nearly 2 million people in Germany who earn minimum wage salaries, or about 5% of workers
......
UBS economist Felix Huefner said the move should "boost overall wage growth" across the German economy, while warning it could "contribute to broader wage pressures."
Germany's hawkish central bank took the unusual step of publicly criticizing the measure this week, calling it "worrying." It said it would have a knock-on effect on wages for higher earners.
......
Germany's minimum wage is already among the highest in the European Union.
https://edition.cnn.com/2021/11/25/econo...index.html
Updated 1311 GMT (2111 HKT) November 25, 2021
Three German political parties agreed to form a new government on Wednesday, with left-leaning Social Democrat Olaf Scholz set to succeed Angela Merkel as chancellor following lengthy coalition negotiations.
As part of the coalition agreement, the country plans to raise its minimum wage to €12 (US$13.46) an hour, from the current rate of €9.60 (US$10.77) an hour.
The move could boost the income of nearly 2 million people in Germany who earn minimum wage salaries, or about 5% of workers
......
UBS economist Felix Huefner said the move should "boost overall wage growth" across the German economy, while warning it could "contribute to broader wage pressures."
Germany's hawkish central bank took the unusual step of publicly criticizing the measure this week, calling it "worrying." It said it would have a knock-on effect on wages for higher earners.
......
Germany's minimum wage is already among the highest in the European Union.
https://edition.cnn.com/2021/11/25/econo...index.html
