Abstract

Germany is the main receiving country of posted workers in the EU and the issue of posting has been a prominent issue of public debates about wage equality and minimum wage setting. This article describes the evolution of minimum wage setting in Germany by collective agreements at sectoral level declared generally binding under the Posted Workers Act. Since the 1990s the scope in terms of sectors covered has been extended consecutively and finally resulted in the introduction of the statutory minimum wage in 2015. However, evidence from various sectors shows that formal coverage does not also mean that posted workers actually receive the minimum wages as agreed in sectoral collective agreements or as set in the context of the statutory minimum wage.