Germany: The minimum hourly wage will increase to 12 euros from October

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In the implementation of one of their basic pre-election commitments, the Chancellor of Germany, Olaf Solts and the Social Democrats, raising the national minimum hourly wage to 12 euros from October.

To date the minimum hourly wage in Germany is 9.82 euros and will increase to 10.45 euros from July. With the new bill it will increase even more three months later.

THE Social Democrat Minister of Labor, Ubertus Haleestimates that 6.2 million workers will benefit from the increase, which will cost employers 1.63 billion euros in the period October-December, according to the draft law invoked by Reuters.

It wants to attract 400,000 skilled workers from abroad every year

Meanwhile, in the plans of the new governing coalition in Germany wants to attract 400,000 specialists employees from abroad every year. The idea is to tackle demographic imbalances and labor shortages in “key” sectors, problems that threaten to undermine recovery from the coronavirus pandemic.

“The shortage of skilled workers has become so serious that it is dramatically delaying our economy,” he said. Christian Deere head of their parliamentary group Free Democrats (FDP) speaking in the financial magazine WirtschaftsWoche.

“We can bring the problem of an aging workforce under control with a modern immigration policy. “We must reach the target of 400,000 skilled workers from abroad as soon as possible.” Dir.

The Social Democrats (SDP) of KOlaf Solz, the PDF and the Greens members of the governing coalition set out in their agreement the adoption of a point system for skilled workers from countries except EU and raising the minimum hourly wage to 12 euros in order to make the country more attractive.

The German Economic Institute estimates that the country’s workforce will shrink by more than 300,000 people this year, as older workers retiring outnumber young ones entering the labor market.

The gap is expected to widen further, bridging them 650.000 in 2029, which means that from now until 2030 they will be missing from the German economy in total approximately 5 million employees.

After decades of low birth rates and unequal immigration, the declining workforce is also a demographic bomb for its pension system. Germany, as fewer employees bear the cost of financing more retirees, who now have a longer life expectancy.

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