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WORKING IN GERMANY

German chancellor calls for €15 per hour minimum wage

As the debate about the national minimum wage heats up, Germany's Chancellor Olaf Scholz has aired support for a gradual increase to €15 per hour.

Published: 14 May 2024 11:47 CEST
Updated: 14 May 2024 14:03 CEST
Euro notes and coins lie on a table
Euro notes and coins lie on a table. The debate over the national minimum wage is heating up in Germany. Photo: picture alliance/dpa | Marijan Murat

Speaking to German media outlet Stern on Tuesday, Olaf Scholz, of the Social Democrats (SPD), said he would support an initial hike in the minimum wage to €14 per hour, followed by an increase to €15 per hour for the lowest earners.

The SPD politician also slammed the recent decision of the minimum wage commission to raise the current floor by just €0.41 cents per year this year and next – a move he described as a “mini adjustment”.

At the last round of talks last year to determine the German minimum wage, the commission had decided on an initial increase from €12 per hour to €12.41 at the start of 2024 to €12.82 from 2025. Previously, the government had raised it from €10.45 per hour to €12 per hour in October 2022. 

However, this time around the commission’s decision was not unanimous, with representatives of workers and trade unions claiming to have been outvoted by the employers on the panel. 

“After the increase to €12 at the beginning of this legislative period, some members of the Minimum Wage Commission, which is supposed to carry out the annual increases, unfortunately broke with the social partnership tradition of deciding by mutual agreement,” said Scholz.

“The employers only insisted on a mini-adjustment. That was a major break with convention.”

READ ALSO: How millions of workers in Germany are earning less than €14 per hour

Scholz’ comments follow a number of statements by SPD politicians in favour of a further hike in the minimum wage in recent weeks.

Previously Saskia Esken, the co-leader of the party, had called for a reform of the Minimum Wage Commisison and a “significant increase” that would enable workers to escape poverty. 

Representatives from the Greens, Left Party, and the Verdi union have also advocated for a €15 minimum wage. Green politician Katrin Göring-Eckardt recently stated that a statutory minimum wage of €14 this year and €15 next year was necessary in light of the soaring cost of living in Germany. 

The debate over the minimum wage has also been fuelled by new statistics revealing that 8.4 million people – equivalent to roughly 10 percent of the population – currently earn less than €14 per hour. 

The minimum wage is typically determined by a commission consisting of representatives of both workers and employers.

German Chancellor Olaf Scholz

German Chancellor Olaf Scholz speaking in the German Bundestag. Photo: picture alliance/dpa | Michael Kappeler

READ ALSO: Five things to know about salaries in Germany

However, in 2022, the government stepped in to mandate a €12 per hour minimum wage, fulfilling one of the SPD’s key election pledges. 

“With this, we have created the biggest salary improvement for low-wage workers in years,” Scholz told Stern, adding that warnings about job losses had failed to come to fruition.

If the SPD does step in to mandate another wage increase, it is likely to face fierce opposition from both employers and its pro-business coalition partners, the Free Democrats (FDP).

Last December, Rainer Dulger, the president of the employers’ association, accused the centre-left party of preparing yet another politicial intervention into the national minimum wage. 

This would not only break the SPD’s promise that the €12 hike was a one-off, but also interfere with the autonomy of the commission, Dulger said. 

FDP politicians have also warned the SPD to avoid stepping in once again. 

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READER INSIGHTS

‘Told to leave the country’: How foreigners in Germany face xenophobia and racism

In a recent survey, the majority of The Local readers said they felt xenophobia and racism was on the rise in Germany, but personal experiences varied dramatically. Here's what readers said.

Published: 5 September 2024 16:42 CEST
'Told to leave the country': How foreigners in Germany face xenophobia and racism

The word xenophobia comes from the Greek words xénos (foreign) and phóbos (fear), and is defined as the dislike of anything foreign or strange. 

It tends to stem from the perception of a conflict between an in-group and an out-group, and often is related to the fear of losing a national, ethnic, or racial identity.

While xenophobia itself refers primarily to the fear experienced by someone, the danger is that xenophobic sentiments lead to racist behaviour–and sometimes violence.

The far-right Alternative for Germany (AfD) has promoted xenophobic rhetoric for years.

In an investigation into the party earlier this year, Germany’s Office for the Protection of the Constitution (BfV) identified numerous statements made by AfD officials that questioned if foreign nationals belonged to the German nation, regardless of their level of integration, or even German citizenship.

Partly due to their propensity for promoting xenophobic ideas, the BfV labelled the AfD as an “suspected extremist” organisation – and in the state of Saxony, the local AfD branch was found to be a “confirmed extremist” organisation.

READ ALSO: Germany labels Saxony branch of far-right AfD as extremist

Given the AfD’s strong showing in the recent state elections in Saxony and Thuringia, some are concerned that xenophobia and related racist acts could be on the rise in Germany. 

In a recent survey, we asked our readers if they have experienced a rise in xenophobia or discrimination towards foreigners in Germany.

Of the readers who immediately responded, 58.3 percent said they had noticed a rise, whereas 41.7 percent said they had not.

xenophobia graph

What does xenophobia look like?

In its most raw and ugly form, xenophobia manifests as grotesque acts of racism.

A 35-year-old from Kenya who chose not to share their name told The Local that they were called a racial slur and “shown the Hitler salute” recently while on a boat ride in Lübbenau.

For the record, demonstrating a Hitler salute (also called a Nazi salute or Hitlergruß) is illegal in Germany, along with hate speech, and is punishable by up to three years in prison.

READ ALSO: FACT CHECK – Are people punished for using Nazi slogans in Germany?

But xenophobia is also often expressed with more subtlety.

Jamey, 45, from the US described a situation while camping in Saxony where the campground hosts talked down to him and those he was with, implying they were stupid because they were not German.

Another reader from India explained that xenophobia doesn’t always lead to direct confrontations, but can lead to a palpable sense that people are avoiding you: “Be it at a grocery store, a bus stop or a walk in the neighbourhood,” they said. 

The reader estimated that in their experience roughly 25 percent of people might avoid them or engage in some form of evasion, but that it was enough to make them feel uncomfortable and unwelcome.

Many respondents who said they felt xenophobia was increasing cited indirect acts like this, or otherwise verbal altercations, as being the primary example of racism they had experienced.

“It is mostly about smaller things so far,” said a 35-year-old from the Balkans, “But I’ve heard people shout hostile things at foreigners in the street a couple of times in the past year, which I personally didn’t experience before.” They added that they’ve lived in Germany for six and half years.

You might not notice it if you ‘look German’

A number of respondents who said they had not observed a rise in xenophobia or racism directly also noted that they might not immediately be perceived as foreigners themselves.

One respondent who told The Local that she had “not experienced any racism myself,” added that she’s a “white American” with German heritage.

For his part Ali, 56, from London said, “Only once or twice have I ever felt negatively treated as a foreigner here. But it’s not obvious I’m foreign until I open my mouth.”

Another respondent from Finland said that “as a white immigrant” that experience xenophobia “far less than people of colour”.

How does xenophobia affect work and day to day life?

Of those who had experienced xenophobia or racist acts in Germany, quite a few cited experiences in the workplace.

Elvis, who didn’t offer details about his age or location, said that one of his co-workers had referred to him as a “bush man”, and another had reacted with obscenities after seeing him with his wife.

He added that he’s worried rhetoric used by AfD leaders is increasing fear and intolerance of foreigners.

In less severe instances–though still hurtful and problematic–xenophobia in the workplace can come in the form of indirect comments. In some cases people might not even realise that their comments are rooted in xenophobic ideologies.

Carla, 47, from Portugal told The Local that “In the early days at my job, it was common to hear that ‘it was cheaper to hire a southerner than a German for my position’ and ‘I don’t understand why [the company] would hire someone that doesn’t speak German’”.

She added that she has since learned to speak German.

Beyond the workplace, some readers reported experiencing prejudice or racism in other public spaces.

“In the hospital some nurses were behaving in an openly racist manner”, said Hilary, 77, from the UK. Fortunately in her case, others stepped in “to ‘correct’ them”.

Erdi, 35, from Turkey, was also the victim of racist speech recently. He told The Local, “After my two-year-old son had a conflict with a German kid, their parents threatened us, telling us to leave the country if my son would continue to behave like this.”

READ ALSO: ‘I’m worried for my kids’: Foreigners in Germany fearful over rise of far right

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