Esser: “Small businesses face particular challenges”

The Federal Government coalition agreement stipulates the introduction of a minimum remuneration for trainees in the dual system from 1 January 2020. The Federal Institute for Vocational Education and Training (BIBB) has used a data-based simulation to investigate the issue of which businesses would be affected by a minimum training remuneration – in other words which would have to pay the trainees more, and how high the anticipated cost increase might be for companies.

The simulation shows that approximately eleven percent of all training companies in Germany would be affected by an assumed minimum training remuneration of €500 in the first year of training. More than one in three (35 percent) companies providing training in Germany would have to adjust their training remuneration if an amount of €650 is assumed. Skilled craft businesses, small companies with up to nine employees and companies in eastern Germany would face particular challenges as a result of a minimum training remuneration.

The introduction of a minimum training remuneration will consequently also cause an overall increase in costs which companies have to pay for training. According to BIBB calculations, the skilled trades would also be disproportionately affected by this. The net cost increases may fall between 1 and 15% depending on the area of education, size of company, region and assumed remuneration level. If only those companies affected by the introduction of a minimum training remuneration are considered, the cost increases would turn out to be much more significant.

“On the basis of the simulations conducted by the BBB, no conclusive statements can be made regarding the actual impact of the introduction of minimum training remuneration,” explains BIBB President Friedrich Hubert Esser. “However, they have an important contribution to make in the discussion relating to scale. Ultimately, it is important not to further jeopardise the readiness in particular of small businesses to provide training.”

Detailed information is available in the BIBB REPORT, issue 4/2018: “Minimum remuneration from a company perspective: Assessments using data-based simulations” The issue can be downloaded free of charge at www.bibb.de/bibbreport (German only).

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