Germany misses EU deadline on wage transparency

Germany violates EU law from Monday after failing to implement new pay transparency rules. The deadline expired on Sunday.

The EU Commission must now decide whether to launch infringement proceedings against Germany. Family Minister Karin Prien said talks are ongoing with other EU partners on possible adjustments. According to Eurostat data from 2024, women in Germany earn on average 15.6 percent less than men. The 2023 EU directive provides for information rights and reporting obligations for employers. The Federal Family Ministry plans implementation by early 2027. Some obligations are set to apply only from 2028. Germany has had its own transparency law since 2017.

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Federal Health Minister Nina Warken announces health insurance savings plans at Berlin press conference.
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Warken presents savings measures for statutory health insurance

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Federal Health Minister Nina Warken (CDU) presented far-reaching savings plans for statutory health insurance (GKV) at a press conference in Berlin on Tuesday. She intends to implement more than three-quarters of an expert commission's 66 proposals to save 20 billion euros starting next year. The funds currently face a deficit of about 15 billion euros.

The German government's pension commission will present its proposals for reforming old-age security on June 23. The original date had been June 29.

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After the Bundesrat blocked the planned tax-free relief premium of up to 1,000 euros, leading politicians are urging a comprehensive income tax reform instead. Manuela Schwesig (SPD) and Markus Söder (CSU) described the premium as failed.

Leading German business associations warn of the consequences of unpredictable US policy on transatlantic data transfers. A failure of the EU-US Data Privacy Framework would plunge companies into chaos and legal uncertainty. Holger Lösch from the BDI stressed the essential need for reliable data traffic.

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The SPD parliamentary group has opposed flat cuts to parental allowance. Family Minister Karin Prien of the CDU faces pressure to save 500 million euros.

Leading economists have proposed reforming marriage tax splitting in an open letter to Chancellor Friedrich Merz and Vice Chancellor Lars Klingbeil.

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Die Linke has criticized the old-age benefits for Bundestag members as disproportionately high. It bases its claims on calculations by the Bundestag's Scientific Service.

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