Costs of minimum wage in Germany to rise in 2015/16

The situation in Germany has changed least where the general statutory minimum wage is concerned. At the start of the year, the introduction of the minimum wage would mean additional.

"Based on a new analysis of the Institute for Employment Research (IAB), costs for businesses should rise by 1% due to the minimum wage", says Commerzbank. 

In the run-up to these legal changes and the wage bargaining round of 2015, a notable upsurge had been expected in labour costs. First experiences with the new labour market provisions and this year's collective wage agreements in several important sectors like metal and electrical industries, chemical industry, public service of the federal states have prompted a rise.

"Over the last year, labour costs of German businesses rose gradually, and this process will continue. But at around 3% (2015) and 3¼% (2016)", added Commerzbank.