Statutory minimum wage - increases from 01.01.2017

The Minimum Wage Act stipulates that a permanent commission of the collective bargaining partners decides every two years on the adjustment of the minimum wage. After the statutory minimum wage was introduced on 01.01.2015, the members of the Minimum Wage Commission unanimously voted on 28.06.2016 for an increase of 34 cents from 01.01.2017. The Federal Cabinet has now passed a corresponding ordinance, as announced by the Federal Government on 26.10.2016.

As a result, the statutory minimum wage will increase from EUR 8.50 to EUR 8.84 gross per hour as of 01.01.2017.

In addition, a minimum hourly wage of 8.50 euros will also apply for newspaper deliverers from 01/01/2017 to 31/12/2017; from 01/01/2018, newspaper deliverers will also receive 8.84 euros per hour.

From 01.01.2018, the collective bargaining privilege will also cease to apply and the statutory minimum wage will then apply to all sectors.

Date: 31. Oct 2016