Agriculture Minister: Higher Minimum Wage Might Threaten Farmers' Livelihoods
- Grab a seat, buddy!
Farming Livelihoods at Risk due to Proposed Increase in Minimum Wage by Minister - Increase in Minimum Wage Threatens Farmers' Survival, According to Minister
Come Friday, when the minimum wage is due to be set, Agriculture Minister Peter Hauk is worried about the impact on farmers. Hence, he's advocating for an exception for the agricultural sector, especially during discussions with the advisory commission of employers and unions.
Hauk points out it's not just about economics. "It's about whether agriculture can still be profitable in our country and if it's worth operating it," he argues.
Currently, the minimum wage stands at €12.82 per hour. Employers have sounded the alarm about potential serious repercussions from an increased minimum wage. On the other hand, the German Trade Union Confederation aspires to achieve a minimum wage of €15.27 per hour by 2026 to meet EU requirements that the minimum wage reaches 60% of the average national income.
In the coalition agreement, the CDU, CSU, and Social Democrats have not specified a target, but they mention €15 as a possibility.
Hauk questions why labor costs in fruit and vegetable production already account for up to 60% of the largest cost block. He suggests making a distinction between permanent residents who (must) cover increasing living costs with their minimum wage and temporary seasonal workers who only work in the country for a short period. "That's social injustice," he claims.
- Key Points:
- Germany's minimum wage is set to increase in 2025, but agriculture might face challenges due to its reliance on seasonal and migrant labor.
- The unique nature of agricultural labor calls for specific considerations, potentially including exemptions, to balance fair wages and sector competitiveness.
- Historically, Germany has implemented exemptions or special provisions for agricultural labor to accommodate seasonality, labor market fluctuations, and the dependence on migrant workers.
CDU, CSU, and Social Democrats, BDA, Sources, [Source](https://www.wiwo.de/wirtschaft/soziales/minimum-lohn-ab-2025-in-deutschland-115718114.html
- The unique nature of agricultural labor, which heavily relies on seasonal and migrant work, might require specific exemptions in the upcoming discussion about the community policy regarding vocational training, finance, business, politics, and general-news to ensure fair wages and the competitiveness of the sector.
- The Agriculture Minister is advocating for the agricultural sector to be exempted, or provided with special provisions, from the upcoming minimum wage increase, citing the high cost of labor in fruit and vegetable production and the social injustice towards temporary seasonal workers.
