Approximately one in every five individuals reap advantages from the increase in the minimum wage. - Approximately twenty percent of individuals experience a rise in their income due to an uptick in minimum wage.
A significant minimum wage increase, planned for the beginning of 2027, is set to have a more substantial impact on the service sector (21%) compared to the manufacturing sector (14%). This trend is particularly noticeable in the eastern German state of Saxony-Anhalt, where more than a quarter of employees (25%) are expected to be affected.
According to recent estimates, approximately 164,000 employees in Saxony-Anhalt stand to benefit from the minimum wage increase, with women and part-time workers set to gain the most. This is due to the higher proportion of women and part-time workers in lower-paid jobs and part-time positions.
In Mecklenburg-Western Pomerania, around 22% of jobs could be affected by the minimum wage increase, while in western Germany (including Berlin), the percentage is approximately 16%. Saxony, another eastern German state, sees 21% of its jobs potentially impacted.
The minimum wage in Saxony-Anhalt is set to rise from €13.90 per hour starting next year, and is expected to reach €14.60 in 2027. In non-unionized companies, 30% of jobs could be affected by the 2027 minimum wage increase, compared to 10% in unionized companies.
The increase is expected to improve earnings for vulnerable groups like women and part-time workers, enhancing their economic security. By lifting wages primarily in sectors and employment forms where these groups are more heavily concentrated, the minimum wage increase promotes socioeconomic equity and reduces wage disparities within the labor market.
The increase in the minimum wage is also expected to help narrow the gender pay gap. Since women are more likely to be affected by minimum wage increases, raising the minimum wage helps raise the bottom of the wage distribution predominantly occupied by women.
Saxony-Anhalt ranks third among eastern German states in terms of the number of jobs affected by the minimum wage increase (excluding Berlin). Low-wage earners are particularly likely to benefit, with 67% expected to receive more money in the future. The state ranks third in this regard as well.
In summary, the upcoming minimum wage increase is set to disproportionately benefit women and part-time workers in Saxony-Anhalt, enhancing their economic security and promoting socioeconomic equity.
- To address the anticipated impact of the upcoming minimum wage increase on both business and personal finance, the community policy could consider providing resources and support for affected employers, including information about potential employment policy adjustments to mitigate financial burdens.
- As the minimum wage increase aims to improve the financial well-being of vulnerable groups, such as women and part-time workers, a comprehensive employment policy could be drafted to ensure these groups have access to financial education and resources, empowering them to make informed decisions about their personal-finance management.
