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Raising Minimum Wage Pros and Cons

Raising Minimum Wage Pros and Cons

The current lowest wage is not enough to live on. If you work all day long in a wealthy country like in European ones, you have to be able to make a good living from it. Comments for a minimum wage at a glance.

Minimum Wage Exceptions – The Statutory Wage Still Does Not Apply To

Adolescents under the age of 18 who have not completed vocational exercise
Apprentices – regardless of their age, within the framework of the vocational job. However, the correct term for this wage for trainees is minimum remuneration and should not be confused with the statutory wage. Find out more here details on the lowest training allowance and here you will find the amount of the lowest wage for trainees in 2022.The differences can be partly explained by different assumptions about how many employees who already earn 15 dollars or more an hour can also expect a wage increase because the higher minimum wage creates pressure from below.

Does The Lower Wage Plus Make Work Too Expensive?

The statutory wage started approximately 5 years ago. However, the loss of hundreds of thousands of jobs that some professionals had predicted did not materialize. The head of the Employment Agency, expects no bad effects on the labor from the increase to the explained amount. With the leap to the expected rate, there will be a clear intervention in the wage structure, say the experts of the for labor market and occupational research. But the additional result is not as strong as in 5 years ago. At that time, the bottom line was that practically no jobs topic to social security contributions were lost and earnings in the low-wage industry had increased.

Experts advocate a more cautious approach and an increase to the amount in two stages. And they recommend involving the minimum wage regularities. The pandemic is putting a strain on the finance, but overall growth is predicted for the current year. In addition, there was a shortage of workers in many places, especially in gastronomy. Therefore, the consequence that a higher wage also brings more people into the labor market should have a great result, say the finance experts.


Will The Collective Agreements Be Overturned?

In fact, it comes into conflict with the applicable agreements – for example for the building cleaning trade and temporary work. In both industries, entry-level wages of less than fifteen dollars are planned by the end of 2022, for building cleaners around 10 dollars. Some mutual agreements currently provide for earnings of less than 15 dollars. However, the mutual agreements would not be superseded. It is only about individual lower tariff, for which the statutory wage then has to be paid.

According to the ministry, the increase in the minimum wage is only a first step towards greater work equity. Above all, we need more proper mutual agreements, the authorities said. Only 45 % of the employees worked under the umbrella of a mutual agreement. The state must set a good example.

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