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Wage gap between minimum wage and temporary employment widening

date
06.07.2018
category

Further wage increases in temporary staffing already agreed

Thomas Hetz, Managing Director of the BAP: "Temporary work remains the more attractive alternative".

On June 27, 2018, the Minimum Wage Commission had announced that the statutory minimum wage in Germany from the current level of 8.84 euros gross per hour worked is to be raised in two stages. It will then rise initially to 9.19 euros on January 1, 2019, and then to 9.35 euros 12 months later.

It is already clear today that the Payment in the temporary employment industry with it ever stronger from the general minimum wage. Today, the minimum wage for temporary workers is already 9.49 euros in western Germany, well above the level that the minimum wage will not reach until 2020. And the wage in temporary employment will also continue to rise, which is already foreseeable today due to valid collective bargaining decisions. For example, the temporary employment wage for employees in jobs with no prior knowledge or entry-level qualifications will gradually rise to 9.96 euros in western Germany and 9.66 euros in the new federal states by October 1, 2019. 

The Chief Executive of the Federal Employers' Association of Personnel Service Providers (BAP) Thomas Hetz explains: "As a pioneer, our industry already introduced a minimum wage in 2012, even before the introduction of the statutory minimum wage. generally binding wage floor was introduced. This temporary minimum wage has been continuously increased since then. In the period from January 2012 to October 2019, it will rise by 26.2 percent in the west and by as much as 37.8 percent in the east of our country. The BAP-DGB collective agreement also offers other benefits for temporary workers, such as comprehensive industry surcharges, vacation pay and Christmas bonuses. With all these advantages, temporary employment will remain the more attractive alternative for employees in the future."

Andreas Nusko, Managing Director of Franz & Wach Personalservice GmbH adds that "the Wage floor also Still relevant for fewer and fewer temporary workers is because higher wages are now paid even for unskilled workers in many assignments. About industry-specific surcharges, the wage increases after six weeks and again after three months. More than half of our employees now benefit from this arrangement, regardless of their qualifications.

Source: www.personaldienstleister.de/presse/nachricht-des-tages/ndt/gesetzlicher-mindestlohn-wird-erhoeht-zeitarbeit-bleibt-die-attraktivere-alternative.html  

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