Germany and Czech Republic: minimum wage


The national minimum wage in Germany is to increase for the first time since January 2017.


The German government has confirmed that the national minimum wage will go up from €8.84 an hour to €9.19 from January next year. The 4% increase comes at a time when inflation is rising by just 2.5% (October). 


The government decision is in line with a recommendation from the independent commission, made up of representatives of the unions, employer and academics, which proposed that the minimum wage should increase at the same rate as negotiated wages. 


A further increase has also been agreed for 1 January 2020. However, this is more modest, increasing the rate by only 1.7%, up to €9.35 an hour.


Minimum wages are also going up in January in the neighbouring Czech Republic, and by a substantially higher percentage — 9.4% on the January 2018 rate. However, although this is well above inflation (2.2% in October), the increase will still leave the Czech rate, which is expressed as a monthly figure, well below German levels at just CZK1,350 a month (€513) against €1,554 for a 39-hour week in Germany. 


€1 = 89p on 21 November