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Merkel quashes revolt over female exec quota

German Chancellor Angela Merkel's coalition defeated an election-year opposition bid Thursday to set a quota for female board members in a vote that exposed a party rift and forced her to give ground.

Merkel quashes revolt over female exec quota
Photo: DPA

The Bundestag, the lower house of parliament, rejected the motion, which called for a 40-percent binding quota for women in supervisory and management boards of large companies within a decade.

After an emotional debate, 320 lawmakers voted ‘no’, while 277 voted in favour, with one abstention.

Five months ahead of elections, opposition deputies had forced the vote which earlier in the week backed Merkel into a corner after some of her allies threatened to break ranks and help pass the motion.

Urging parliament’s support, Frank-Walter Steinmeier, a leading member of the centre-left Social Democrats, said if progress continued at the current rate “it will take until the middle of the century until we have 40 percent of supervisory boards occupied by women”.

“That is decidedly too late,” he said.

Merkel, 58, the first female leader of Europe’s top economy and often cited as the world’s most powerful woman, has opposed the introduction of compulsory quotas for women in the boardroom. But her Labour Minister Ursula von der Leyen has long been a staunch backer of the move and initially had not made it clear whether she would toe the party’s line in Thursday’s ballot.

At what was described by a senior party member as an “intensive discussion”, leaders of Merkel’s Christian Democratic Union (CDU) agreed a compromise Monday to include in its manifesto from 2020 a 30-percent female quota in supervisory boards of large companies.

The move marked a change of course just four months after CDU members backed a flexible approach for companies to voluntarily decide on quotas for women in the boardroom at their party congress.

Merkel appeared to play down her party’s internal squabbling.

“Issues of equal treatment, family policy, also the childcare benefit, such things are always discussed by us in the CDU with a great deal of passion,” Merkel told Thursday’s Bild mass circulation daily.

“And one learns, not all women think alike,” she added.

Her spokesman told reporters Wednesday that Merkel’s stance in the debate remained unchanged – there must be more women in top business posts.

The compromise succeeded in uniting the CDU, including von der Leyen who is also a deputy leader of the centre-right party, to reject the opposition’s draft legislation.

However von der Leyen has faced stiff criticism from within her own party, with Christean Wagner telling the daily Frankfurter Allgemeine Zeitung that the minister could not afford another such incident.

“Otherwise she’ll endanger the election victory of the Union,” he was quoted as saying, referring to Merkel’s conservatives.

Media commentators viewed as a setback the change of policy by Merkel, who hopes to clinch a third term in September 22nd general elections, and said it had created bad blood within the conservative bloc.

“Instead of a compromise which everyone can take into the election campaign, there are bloody noses and distrust in the party,” the Tagesspiegel commented.

“Because the chief (Merkel) once again didn’t commit, everyone involved is in the end standing about embarrassed,” it added.

Bild called it a “defeat” for the CDU leadership and Merkel but questioned whether any good could come out of it in the winning of more female votes.

“Whether this turnaround on the quota issue will now send female voters in droves to the CDU may be doubted,” it said, suggesting it was about von der Leyen positioning herself for the post-Merkel era.

Merkel’s junior coalition partners, the pro-business Free Democratic Party, opposes fixed quotas. Before the vote FDP parliamentary group chief Rainer Brüderle expressed relief the opposition’s attempt to drive a “wedge” into the coalition had failed.

Women made up 4 percent of management board membership among the 200 biggest German companies in 2012, according to a study by the DIW economic research institute.

AFP/mry

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WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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