Effects of the Statutory Minimum Wage on Wages and Working Hours (MLK 036).

The project examines the effects of the most recent increases in the statutory minimum wage (€12.00 to €12.41 on 1 January 2024, and €12.41 to €12.81 on 1 January 2025) on wages, working hours, and competitive conditions. The central research questions are: How do hourly and monthly wages, the wage distribution, the low-wage sector, wage mobility, the gender pay gap, as well as working hours and total labour volume change? Does the higher minimum wage contribute to fairer competitive conditions between firms and regions that are less based on low wages? The analyses are based on the VE microdata for the years 2022 to 2025, including monthly panel data as well as the cross-section for April 2025. The project forms the basis for the sixth report of the Minimum Wage Commission.