Minimum wage crisis: Munich's mothers fight for daily survival!

Minimum wage crisis: Munich's mothers fight for daily survival!

In Munich, many people feel that the statutory minimum wage is not sufficient, especially in the Bavarian metropolis, where the cost of living is significantly higher than in rural regions. Loud daily news Economists have therefore begun to call for a regional staggering of the minimum wage. This measure is intended to offset the higher costs that are particularly incurred in metropolitan areas such as Munich. The reality is shown by the example of Fabienne Marquardt, a single mother and hairdresser from the city who, despite a gross income of around 2,300 euros per month, only has around 1,700 euros at her disposal. With a basic rent of 1,000 euros for her two-room apartment, there isn't much left over.

An alarming statistic says that around a third of the German population lives “from hand to mouth”. More than 21% are at risk of poverty and around 15% are below the poverty line, which is 1,400 euros net for a one-person household. This sheds a clearer light on the discussion about the minimum wage, which has now been increased from 8.50 to the current 12.82 euros since its introduction on January 1, 2015, but in many cities is not enough to cover the cost of living.

Regional graduations and challenges

Economic experts argue that a regionally staggered minimum wage, as practiced in the USA and Canada, would be a sensible step. In the United States, the minimum wage varies greatly by region; For example, rates range from $14.70 in Arizona to $17.50 in the District of Columbia. The advantage of such a regulation would be to equalize purchasing power and reduce the burden on companies in rural areas. However, there are also concerns: political difficulties in implementation and increased bureaucracy could become a stumbling block.

The discussion about different minimum wages by industry is becoming increasingly louder, especially in agriculture. The President of the German Farmers' Association, for example, calls for seasonal workers to be paid only 80% of the minimum wage. The SPD is firmly defending itself and warning that such differentiation undermines the basic idea of ​​the minimum wage. There are already exceptions for certain groups such as trainees and interns.

Future developments and EU requirements

The minimum wage increase in Germany has repeatedly caused discussions in recent years. Although the increase to 12 euros on October 1, 2022 has brought positive income improvements for around 8 million employees, a comparison with other EU countries shows that Germany is in the middle of Europe with a minimum wage of around 53% of the median wage. The EU has issued guidelines stipulating that the minimum wage should be at least 60% of the median wage, but Germany is lagging behind.

The Minimum Wage Commission will discuss future increases in mid-2025, while politicians like Olaf Scholz are calling for a gradual increase to 14 euros and later even 15 euros. SPD leader Saskia Esken supports these efforts and warns that wage levels are too low, which could further increase social inequality. It remains to be seen how the debate about the minimum wage will develop in the coming months and whether regional graduations could possibly represent an ideal solution.

In summary, it remains to be said that, as the example of Fabienne Marquardt shows, despite the progress in minimum wage law, many people continue to have great difficulty making a living in a city like Munich. The voices of experts and politicians are calling for a solution that takes into account both the needs of the working population and the realities of employers.