Germany pay rise: 2,800 euros in new wages for average wage earner

Image copyright Getty Images Image caption German workers are among the highest-paid in the world Germany’s top-earning workers will be among the first to benefit from a 25% pay rise over the next four…

Germany pay rise: 2,800 euros in new wages for average wage earner

Image copyright Getty Images Image caption German workers are among the highest-paid in the world

Germany’s top-earning workers will be among the first to benefit from a 25% pay rise over the next four years.

The agreement will increase the basic wage of those earning over 19,450 euros ($24,000) to 2,800 euros a month.

Included will be those employed by firms that had previously agreed a wage deal that left them with a loss of 2,400 euros per month.

The rise will be funded by an increase in taxes for capital.

The German media have called it “a stark reversal of the German model”.

The Labour Ministry estimates that 2.2 million workers will be affected.

Where would the money come from?

In July, Germany’s state leaders of state “Federalism” came together to help finance the pay rise by raising the annual capital gain tax on individuals earning over 100,000 euros to 16%.

There was wide-spread resistance to this, and most state lawmakers eventually dropped the decision.

“If we had gone ahead with our original plan there would have been broad opposition across the political spectrum,” Judith Sargentini, president of the Federal Democratic Party of Germany, told Deutschlandfunk radio.

“Therefore it would have been difficult to muster parliamentary support from right and left. Everyone was against the tax.”

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