“Minimum wage creates more wages and employment”

The statutory minimum wage was introduced on january 1, 2019. January 2019 increased to 9.19 euros. For the german trade union federation (DGB) of upper franconia, this is an occasion to take a look at the development of employees and wages since the introduction of the minimum wage in a press release.

DGB regional manager mathias eckardt: "four years after its introduction, we can draw a positive balance: the statutory minimum wage has brought more pay for many employees. Contrary to the prophecies of doom from employers and economic researchers, employment has not fallen. On the contrary, employment subject to social security contributions is now at an all-time high. The minimum wage has boosted private consumption and thus contributed to the current upswing."

A recent DGB analysis of new figures from the federal statistical office and the federal employment agency shows the positive effects on earnings and employment development. Both employment subject to social security contributions and wages had developed positively since the introduction of the statutory minimum wage at the beginning of 2015.

By the end of september 2018, employment subject to social security contributions had risen by 5.9 percent in the city of bamberg and by as much as 11.9 percent in the district of bamberg, according to the german federation of trade unions (DGB).

In bavaria, employees have benefited from a 9.8 percent increase in wages since the introduction of the minimum wage. This means an increase in wages of 2.7 percent per year.

Nevertheless, eckardt still sees a need for improvement: "the state must take its responsibility as a major contracting authority seriously and finally ensure that it only awards its contracts to companies that are bound by collective agreements. Moreover, the statutory minimum wage, which is the lowest halay point, does not provide a living wage for many employees today. It must rise in the medium term and be poverty-proof. Many employees are still being cheated out of the minimum wage, which is why there must be more controls in this area. The responsible financial control of illegal employment needs more personnel and must be able to carry out more suspicion-free spot checks. Those who do not effectively control the law create justice gaps and lose credibility." .