Germany approves first-ever national minimum wage

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Following the adoption of the Minimum Wage Act by the federal legislature, a general statutory minimum wage of €8.50/hour was introduced in Germany on 1 January 2015. The law can be described as the key labour-market reform of the current Grand Coalition. Half a year after the introduction of the statutory minimum wage, labour market data show the continuation of the positive labour market development. Thus, the statutory minimum wage can be described as a resounding success. But there are still a number of problems.

Author: Gerhard Bäcker