Tough decisions ahead for politicians regarding Germany’s minimum wage

 

 

Since its inception in 2015, the German minimum wage of 8.84 euros per hour has fueled arguments between economists as to whether it helps workers or leads to economic problems. We spoke to the President of the German Institute for Economic Research, Dr. Marcel Fratzscher, about the tough decisions facing politicians around potential changes to the law.

“From every perspective, Germany’s minimum wage actually is quite low and not really sufficient to make ends meet,” Fratzscher says. He says a full-time employee on the rate of 8.84 per hour who has a partner and children might need additional money from the government or have trouble saving for retirement.

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