Scholz Advocates for Progressive Minimum Wage Increase – Criticism of Commission

In the current dialogue regarding remuneration in the Federal Republic, Chancellor Olaf Scholz has clearly positioned himself in favor of a gradual increase of the minimum wage to the threshold of 15 Euros. Speaking to "Stern," Scholz announced the intention to initially raise the wage floor to 14 Euros followed by an increase to 15 Euros. This stance has met with criticism from within the Minimum Wage Commission, where Scholz accuses employer representatives of favoring only minimal adjustments and deviating from the practice of consensus-based decision-making. Furthermore, the initiative to raise the minimum wage to 15 Euros also received support from the Greens, the Left, and the labor union Verdi. Voices from these groups have demanded that the statutory minimum wage be increased to 14 Euros this year and to 15 Euros the following year to ensure a living wage, as emphasized by the Green politician Katrin Göring-Eckardt, for instance. However, critical voices from within the SPD complained that the planned increases were insufficient. The minimum wage is set by a specialized commission that represents the social partners. In 2022, the government increased the minimum wage to 12 Euros through legislative action—for the first time and in line with Scholz's campaign promise. Scholz explained to "Stern" that this decision brought about a significant wage increase, especially for workers in the low-wage sector, and that previous fears of job losses were unfounded. Meanwhile, employers have accused the SPD of breaking their word. Employers' President Rainer Dulger stated that after the minimum wage increase to 12 Euros, the SPD is looking to make another intervention into the commission's responsibilities. There was also resistance from the FDP parliamentary group against political directives that could undermine the independence of the Minimum Wage Commission.