News item | 07-07-2023 | 9:00 am
On 1 January 2024, the statutory minimum hourly wage will be introduced and the fixed minimum monthly, weekly and daily wages will disappear. From 1 January 2024, the employer is obliged to pay employees at least the statutory minimum hourly wage per hour. There is always one fixed minimum hourly wage for all employees aged 21 and older. From 1 January 2024, fixed minimum youth wages per hour will apply to employees under the age of 21.
In many cases, the introduction of the minimum hourly wage means that agreements in collective labor agreements and employment contracts must be adjusted to comply with the new system of the law. In many cases, it also requires adjustment of payroll systems.
Now one employee works 40 hours and the other employee 36 hours a week for the same minimum (monthly) wage. As a result, one sector has a lower hourly wage than the other sector. The introduction of a fixed minimum hourly wage puts an end to this situation. The minimum hourly wage is the result of an initiative bill by Members of Parliament Kathmann and Maatoug.
Employers still have six months to prepare for the arrival of the minimum hourly wage. The Ministry of Social Affairs and Employment has drawn up a knowledge document with frequently asked questions and example calculations to help everyone on their way.