The Impact of the Statutory Minimum Wage Act in Saxony

On January 1, 2015, Germany implemented a statutory minimum wage of 8.50 euros per hour. The minimum wage will be adjusted for the first time on January 1, 2017, subject to its effects on competition and employment, among other factors. Such effects are likely to be especially large in the Free State of Saxony, where the minimum wage affects a particularly large share of workers and firms. On behalf of the Chamber of Commerce and Industry Chemnitz, the Ifo Institute, Dresden Branch analysed the short-term effects of the German statutory minimum wage in the Saxon trade and industry sector.