Impact of Minimum Wage Increase on Workers: Number of Individuals Affected - Impact of Minimum Wage Boost on Workers: Number of Beneficiaries
In a significant move aimed at boosting wages and improving living standards, the minimum wage in North Rhine-Westphalia is set to increase to 13.90 euros per hour from January 1, 2026. This rise will potentially benefit around 1.5 million people, according to recent estimates.
The increase could particularly benefit those currently earning below the planned minimum wage, with approximately 1.1 million jobs in the state falling into this category. Out of these, around 472,000 employees work in companies not bound by a valid collective agreement, making them eligible for the wage hike.
The increase is expected to have a more substantial impact on women, with around 398,000 women in North Rhine-Westphalia set to benefit from the rise. This represents 21% of low-wage earners among women in the state. In contrast, around 238,000 men are expected to benefit, accounting for 18% of low-wage earners among men.
It's important to note that the jobs of those in companies bound by a valid collective agreement will not be affected by the minimum wage increase, as they already earn above the new threshold.
The increase is expected to have a positive impact on Düsseldorf, the state's capital, with its substantial population and diverse labor market. While the exact number of workers who will benefit in Düsseldorf is not yet clear, it is reasonable to estimate that tens of thousands of workers could benefit given the city's size and labor market characteristics.
The minimum wage increase is part of a broader national effort to address wage inequality and improve living standards for low-wage workers. The increase will further rise to 14.60 euros a year later, providing additional support for those struggling to make ends meet.
[1] Statistisches Landesamt Nordrhein-Westfalen (2021). Bevölkerung Nordrhein-Westfalen. Retrieved from https://www.statistik-nrw.de/portal/laendervergleich/de/bevoelkerung/bevoelkerungsentwicklung/laendervergleich.html
[3] Stadt Düsseldorf (2021). Einwohnerzahl. Retrieved from https://www.duesseldorf.de/stadt/statistik/bevoelkerung/einwohnerzahl/16934326
The community policy might incorporate provisions for vocational training to help the newly benefited workers upgrade their skills and adapt to the increased wage requirements in businesses. A potential outcome could be a reduction in the financial burden on businesses through the increased productivity of their employees due to enhanced vocational training.
