The Minimum Wage Commission decides upon the adjustment of the minimum wage amount and evaluates the impact of the minimum wage.
A statutory minimum wage was established in Germany as of 1 January 2015. The Federal Government has set up a standing Minimum Wage Commission ("Mindestlohnkommission") to adjust the level of the minimum wage. In performing its tasks, the Commission is supported by a Coordination and Information Office established at the Federal Institute for Occupational Safety and Health.
Every other year, the Minimum Wage Commission has to adjust the level of the minimum wage. It has also a statutory mandate to constantly evaluate the impact of the minimum wage on the protection of workers, the conditions of competition and employment in regard to certain industries and regions, as well as on productivity. The Commission presents the results to the Federal Government in a biennial report together with its resolution on adjusting the minimum wage level.
Top-level organisations of workers and employers propose Commissioners
Collective bargaining partners have a say in appointing members to the minimum wage commission. Following the proposal of the umbrella organisations of the employers and employees, the German federal government appointed three voting members to represent employers and three voting members to represent employees. The Minimum Wage Commission also has two advisory scientific members who do not have voting rights. The Minimum Wage Commission is led by a neutral chairperson. The chairperson was appointed by the German federal government on the basis of a common proposal by the umbrella organisations of the employers and employees.
Tasks of the office
The Coordination and Information Office for the Minimum Wage has the following tasks:
- Scientific evaluation of the impact of the minimum wage on the protection of workers, conditions of competition and employment in regard to certain industries and regions, and on productivity
- Conceptualization and commissioning of external research projects for the evaluation of the minimum wage
- Preparation of the Minimum Wage Commission's biennial reports on the impact of the statutory minimum wage
- Organization of scientific conferences and workshops on the effects of the minimum wage
- Conducting expert hearings in advance of minimum wage adjustments with experts, organizations, and associations affected by the adjustment
- Point of contact for questions about the minimum wage
- Maintaining contact with the customs authorities and the relevant federal ministries
- Organisation and taking minutes of the Minimum Wage Commission's meetings
- Management of the budget of the Minimum Wage Commission