Germany has at last introduced a minimum wage.
An hourly rate of €8.50 will come into effect from January 2015.
This will be the first time in the country’s history when a minimum wage has been in place.
Now only six EU nations have not put a minimum wage in place, namely Italy, Austria, Sweden, Denmark, Finland and Cyprus.
Germany’s minimum rate will be more than the UK rate of £6.50 (€8.19) as of October and the US minimum of $7.25 (€5.33) but lower than that in France €9.43.
It is much higher than Portugal’s minimum of €565 per month, which itself is significantly lower than Spain’s monthly minimum of €753. Portugal’s rate has barely changed since the financial crisis began.
Despite winning the votes of an overwhelming number of German parliamentarians, the issue was divisive.
Mrs Merkel actually campaigned against it in last year's elections, warning it could threaten the country's competitive edge. Business leaders supported her stance, predicting massive job losses.
As many as 30% of people living in the east of Germany earn less than the new minimum, while the figure is closer to 15% in the west.
