Behavioural patterns of companies and employees in the context of the statutory minimum wage

The minimum wage law (MiLoG) introduced a general legal minimum wage in Germany on January 1, 2015, which has been raised by January 1, 2017 and January 1, 2019, respectively. The objective of the research project is to identify, describe and analyse selected implications of the introduction of the legal minimum wage on affected companies and employees. The project applies a qualitative research design, focusing on guided interviews with authorities at the entrepreneurial decision-making level, members of the works council as well as employees.

On the one hand, the project is to characterize reaction patterns on the intra-corporate level, such as changes in personnel, organizational processes, wage-setting, apprenticeships, and interactions with the system of fees and transfers. On the other hand, possible effects on the business environment, e.g. regarding competition, cooperation, and compliance, are examined. The project is also to identify the extent of additional administrative burdens for firms and employees resulting from a compliant implementation of the minimum wage and to determine possible practices of evasion.

The findings of the project are to contribute to the regular reporting of the Minimum Wage Commission (Third Report of the Minimum Wage Commission, expected by June 2020).

IAW Policy Report Nr. 18, Juli 2020 (in German)