Many employees can look forward to higher wages and salaries in the new year. The statutory minimum wage will increase from January 1, 2024. The limit for working in mini-jobs will also increase. However, experts believe that this does not go far enough due to skyrocketing inflation. Here, the Northwind HR team explains what is changing with regard to the minimum wage and mini-jobs and what you need to bear in mind.
Things to know about the minimum wage
The general statutory minimum wage in Germany was introduced in 2015. It regulates the minimum gross amount that employees must earn per hour. Employers must adhere to this stipulation in accordance with the Minimum Wage Act and may not fall below this limit. However, there are also exceptions that make lower pay possible:
- Trainees during vocational training, regardless of age
- under 18-year-olds without completed vocational training
- School interns
- Long-term unemployed persons during the first six months of their reintegration into the labor market
According to the decision of the Minimum Wage Commission, the minimum wage will increase to EUR 12.41 per hour from January 1, 2024 (previously EUR 12.00 per hour). From January 1, 2025, it will then be 12.81 euros per hour. The German Trade Union Confederation does not agree with this minimal increase at all. It corresponds to a wage increase of only 3.4 percent and does not even cushion the high inflation.
In addition, there are so-called industry minimum wages, which are based on collective agreements. These wages and salaries are not affected by the statutory minimum wage. However, they may not fall below it. This means that the legislator’s specification for the general minimum wage corresponds to the minimum level of pay.
What’s new for mini-jobs from 2024
Since October 2022, possible earnings in mini-jobs have been linked to the statutory minimum wage. This means that if the minimum wage rises, the earnings limit for mini-jobbers will also increase.
Therefore, the limit for mini-jobs from January 1, 2024 is 538 euros per month (previously 520 euros / month). The annual earnings limit is therefore 6,456 euros. This does not change the maximum monthly working hours of around 43 hours.
Take advantage of our expertise! We will be happy to advise you if you have any questions about minimum wage or mini-jobs!