Tuesday, June 28, 2016

Minimum: 55 euros more a month – and all are strangely satisfied – THE WORLD

months had haggled unions and employers to every penny. But in the end they agreed on a result with which both sides can live: The minimum wage rises 1 January 2017 to 34 cents to 8.84 euros gross. This was the chairman of the Minimum Wage Commission, Jan Zilius, known in Berlin.

Although the new minimum wage level is far from the union target of ten euros. Nevertheless Stefan Körzell, board member of the German Trade Union Federation (DGB), satisfied: “With a full-time job 37.5 hours per week, the adjustment means at least 55 euros more a month.”

the chief executive of the Confederation of German employers’ associations (BDA), Reinhard Göhner, underlined that the compromise shows that the adjustment of the minimum wage according to clear rules successes:” There is neither political Handel still bargaining, but an increase, the wage development traces. “

first adjustment of the minimum wage to one and a half years

It is the first adaptation of the front half years introduced minimum wage. SPD and Union had decided that an equal representation of representatives of the social partners Commission every two years the increase determined.

base is the previous development of contract wages. In the first application of this rule, both sides argued, however, to last about which collective agreements were to be considered. At issue here were the agreements in the metal industry and in the public sector

While the metal agreement now sidelined remained because they apply from 1 July -. And thus picking up only after the agreed date the end of June – flowed the conclusion of the public service in the recalculation of the minimum one, since this is retroactively from March 1 effective

first report on episodes from. minimum

the panel also presented a first report on the impact of the minimum wage. However, it is too early to assess the effect sound can, said the committee chairman. Neither could the consequences for the competitiveness of the businesses concerned are clearly judged nor the long-term consequences for employment. Especially since the introduction of the minimum wage had been held in an a good economic climate, Zilius said.

The report shows that the fear of many economists negative consequences for the labor market have so far largely failed. Only in the mini-jobs, there was a noticeable decline. So the number of MiniJobber was in spring 2015 compared to the previous month by almost 130,000 lower.

Some of the minor employment were however converted to social insurance contributions. On the number of unemployed had the abolition of mini-jobs no demonstrable consequences, especially since many of the marginally employed are pensioners and students, who can not be unemployed. Numerous workers have the mini job only as a sideline to a regular place and are therefore also not unemployed, if you Minijob was dismantled.



warnings proved to be exaggerated

But not only the warnings of skid marks on the labor market have so far proved to be exaggerated. Expectations that the statutory minimum wage is an effective tool for combating poverty is refuted by the statisticians.

Photo: Infographics world distribution of the minimum wage

Because the number of so-called spiking, which in addition to their wages reflect additional Hartz IV benefits, went last year back only by two percent, as numbers of the Institute for Employment research (IAB) show , And so relate this country in spite of the minimum wage is still around 1.25 million workers supplementary Hartz IV benefits. Because much of the spiking working only part-time, often a few hours a week: In them is Hartz IV recipients who should earn pocket money

Among the full-time employees, who can not live on their wages, dominate parents with several children. Again helps the minimum wage usually not because of the monthly salary, the results from is good 1470 euros, with large families not sufficient to cover the subsistence plus housing costs.



trainees and minors excluded from the minimum wage

excluded from the minimum wage are generally trainees and minors. And also for long-term unemployed and trainees, there are special rules. So should companies hiring long-term unemployed, for half a year pay less than € 8.50 hourly wage. An exception also applies to compulsory work placements and internships, which last only three months.

While the exemption for long-term unemployed is hardly used in practice, the companies responds to the practical rule: A great deal of voluntary internships of longer duration has been removed or reduced to three months

exemptions there are, moreover, in some industries.. To apply as in hairdressing, for Paperboy and of the meat industry partly even lower industry standard wages. But at least in the coming year they must also be adapted to the legal minimum wage.



Four million workers benefited from the minimum wage

to date profit is officially estimated up to four million workers from the minimum wage law: 2.9 million in the west and 1.1 million in the East. This gives almost eleven percent of employees in the old Länder since 2015, more money. In eastern Germany the rate is twice as high.

Other studies based on data from the German Socio-Economic Panel, even going from a total of up to five million workers from lay their wage previously below the threshold of 8.50 euros.

particularly strong is the impact of the minimum wage law for the East German economy. In some regions of Brandenburg, the legal minimum wage is 74 percent of average earnings of full-time employees. By contrast, the minimum wage plays in southern Germany or in cities such as Cologne, Frankfurt and Hamburg hardly matters, since one deserves even with simple activities more money. As an analysis of employer-Institut der deutschen Wirtschaft (IW) shows that prices caused the increase of wages in some service sectors to rise sharply.



Price increase for taxis and domestic helpers

So now must be paid for cab rides over twelve percent. Even domestic helpers prices rose significantly with almost five percent. In East Germany, the price rise was still far from stronger. In Saxony, for example, the taxi rides more expensive, according to IW 24 percent.

Many economists therefore be prepared so that reflects the effects of the minimum wage only during a downturn will. And the integration of the many refugees made difficult

Ifo President Clemens Fuest keeps raising the minimum wage to be wrong. “I fear that the impact on the integration of refugees has. But is positive that the Commission’s public demands to raise the minimum wage to more than nine euros, has failed. “

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