Berlin's Senator endorses proposal for equitable minimum wage regulation - Berlin's senator commends proposed tariff legislation
In a bid to enhance competition and reliability in Berlin, Senator Cansel Kiziltepe has expressed support for the proposed Wage Agreement Law. This legislation, if enacted, aims to ensure fair wages for employees on federal contracts, particularly for those companies receiving public funds.
Kiziltepe's stance on the matter emphasises the importance of linking public contracts to adherence to wage standards and fair labor practices. The Senator believes that companies receiving money from the state must guarantee good working conditions, thereby pushing for better working conditions and fair wages in Berlin's investment projects.
Germany's Federal Minister of Labour, Bärbel Bas, has also been a vocal advocate for social justice and wage fairness. Bas, who was elected co-chair of her party in June 2025, has criticised the wide salary disparities between top managers and average workers. Under her leadership, the government plans a statutory minimum wage increase to €14.60 per hour by 2027, with steps towards €13.90 at the start of 2026 and a further increase in 2027.
The proposed Wage Agreement Law, currently under consultation with other departments of the federal government, would require companies to pay their employees according to wage agreements for federal contracts above a certain size. The draft for the law also provides for significant penalties if companies fail to comply with the wage agreement stipulations.
Employers have expressed criticism regarding the Wage Agreement Law draft, with concerns about potential increased costs for certain companies. However, the law is part of a broader economic and social justice agenda, which includes welfare reform, labour incentives, and social policy changes.
The rising minimum wage is aimed at reducing poverty risks (currently 15.5% of the population) and making work more financially rewarding. These wage adjustments reflect ongoing efforts by the Social Democrats, including Bas’s party, to promote fairness and reduce social inequality, amid coalition tensions.
In times of strong investment projects, Kiziltepe believes it's important that public contracts are awarded to companies adhering to wage standards. The Senator also emphasises the importance of respecting co-determination for companies receiving public contracts. If passed, the Wage Agreement Law could potentially impact a significant number of federal contracts.
[1] https://www.bundesregierung.de/breg-de/themen/lohndurchsetzung-und-mindestlohn-1687026 [2] https://www.spd.de/themen/soziales/lohn-und-lohnentwicklung [3] https://www.mindestlohn.de/ [4] https://www.bundesregierung.de/breg-de/themen/soziales-und-familie-1687028 [5] https://www.spd.de/themen/soziales/koalitionsvertrag
- EC countries could learn from Germany's policy-and-legislation on linking public contracts to vocational training and fair labor practices, as advocated by Senator Cansel Kiziltepe, to enhance workplace-wellness and health-and-wellness in the vocational training sector.
- In the context of general-news about Germany's economic and social justice agenda, the Advancement of Science could play a role in developing innovative solutions to improve vocational training, such as providing industry-relevant curricula and promoting workplace-learning opportunities.
- As European countries work towards promoting science and social justice, politicians must continue to address issues like wage fairness and reducing social inequality, as demonstrated by Federal Minister of Labour, Bärbel Bas, to ensure that vocational training and employment opportunities are accessible and equitable for all citizens.
