The Minimum Wage Commission decides upon the adjustment of the minimum wage amount and evalutes 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 minimum wage amount. 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 minimum wage amount. The Commission made its first decision by 28 June 2016 with effect from 1 January 2017. Furthermore it has 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 report together with its resolution.
When appointing the Minimum Wage Commission, the knowledge level of the collective agreement partners was taken into account. 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.
The Coordination and Information Office for the Minimum Wage has in particular the following tasks:
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