Since the Minimum Wage Act came into force in Germany on 1 January 2015, a general statutory minimum wage has applied across the country. Wage floors of this kind are in place in virtually all European countries and in the US. Minimum wage laws are enacted to prevent wage dumping, i.e. the practice of offering workers unreasonably low pay.
The establishment of a statutory minimum wage has been a contentious issue, with recurrent deliberations ongoing regarding its precise level. Over the past decade, the minimum wage has been incrementally increased from €8.50 to €12.82 per hour. In June 2025, the autonomous Minimum Wage Commission is scheduled to unveil its recommendations for the subsequent adjustment. In the public debate, demands for an increase in the minimum wage to €15 have been a recurring theme.
How does the statutory minimum wage affect pay and employment? How does the level at which the minimum wage is set, in combination with other factors, affect supply and demand in the labour market? And what consequences might this have for distribution, hardship, social inclusion, productivity, prices, competition, working conditions, and company structures? The IAB’s research and advisory services focus on these and other questions.
On this dedicated page, we have compiled a list of current IAB publications and projects that are related to the subject of the minimum wage.