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Minimum wage after 100 days: the verdict

Friday marks 100 days since the introduction of the national minimum wage in Germany, but politicians, economists and trade unions continue to debate the scheme.

Published: 10 April 2015 09:59 CEST
Minimum wage after 100 days: the verdict
The magic number: €8.50 - Germany's new national minimum wage. Photo: DPA

Labour Minister Andrea Nahles lauded the achievements of the new minimum wage, which has been set at  €8.50 per hour, on Thursday.

"The minimum wage hasn’t brought about any considerable loss of jobs or price increases. Lots of people are better off as a result. It has been a success," she said.

The law has so far proved popular with the German public.

A survey carried out by the Trade Union Confederation (DGB) revealed that 86% of the population support the minimum wage, although only three percent of the people surveyed had been directly affected by it.

In discussions before the law's implementation, fears were voiced that it would lead to wide-scale job losses and price increases.

Ferdinand Fischer, an expert from the German Economic Institute, said: "The introduction of the national minimum wage has not caused any price increases in the wider sense, to the extent where people would be out of pocket."

But this week Oktoberfest organisers announced that they will have to raise their beer prices above €10 because of provisions in the minimum wage law.

Meanwhile, the director for the Institute of Employment Research, Joachim Möller, told Spiegel: "The job market meltdown that some economists were predicting simply hasn't happened."

Complaints over bureaucracy

Some employers and trade unions have criticized the law for being too bureaucratic.

The president of the Confederation of German Employers' Association, Ingo Kramer, suggested a possible reform to the law to the Passauer Neue Presse.

"Businesses that pay their employees much more than the minimum wage should not have to comply with all the bureaucratic rules," he said.

Holger Schwannecke, the general secretary of the German Confederation of Skilled Crafts, told the Neue Osnabrücker Zeitung that the compulsory documentation of the minimum wage puts thousands of family businesses under suspicion.

But Nahles said she couldn't see how the requirement of compulsory documentation would lead to too much bureaucracy, and maintained that any changes weren't an option.

She received support from Frank Bsirske, the head of Ver.di, the public services trade union, who said that "the requirement to document working hours is unavoidable in making sure that the minimum wage is adhered to."

Nonetheless the law already set to undergo reform. On April 23rd the coalition government will discuss possible changes, with Chancellor Angela Merkel announcing a desire to make it "more practical".

No figures have been released yet on the number of businesses which haven't complied.

by Matty Edwards

SEE ALSO: Merkel backs equal pay transparency law

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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