Back office: Minimum wage increase also forces insurers to act

Minimum wage and the insurance industry – do they go together?

Yes, because since October 1st, a collectively agreed salary group has been earning less than twelve euros an hour

The back office is now responding

Several sectors, including gastronomy, are groaning under the current increase in the minimum wage



On October 1st, this had to be adjusted from EUR 10.45 to EUR 12 per hour.

A topic that is not usually associated with the insurance industry. 

Because insurance employees are generally considered to be high earners and the training allowances are even among the highest of all professions.

But the minimum wage law has now forced insurers as employers to act.

In addition to the employees in the collectively agreed salary groups I to VIII (monthly gross salary between 2,803 and 5,473 euros), there are also salary groups A and B. 

Regarding the activities, they are assigned to salary groups I (“only brief training required”) and II (“ Knowledge or skills acquired through scheduled induction”), but paid less. 

In salary group A, the gross monthly salary is so low (1,874 euros in 

the first year of work and 1,943 euros from the second year of work) 

That, despite a collective bargaining increase on September 1, 2022 , it was not enough to meet the statutory minimum wage requirement.

Back office: Minimum wage increase also forces insurers to act

10/18/2022 FLORIAN BURGHARDT INSURANCES PANORAMA

Minimum wage and the insurance industry – do they go together? 

Yes, because since October 1st, a collectively agreed salary group has been earning less than twelve euros an hour. The back office is now responding.

Minimum wage and the insurance industry – do they go together? Image: Andrea Colarieti

Several sectors, including gastronomy, are groaning under the current increase in the minimum wage. 

On October 1st, this had to be adjusted from EUR 10.45 to EUR 12 per hour. A topic that is not usually associated with the insurance industry. 

Because insurance employees are generally considered to be high earners and the training allowances are even among the highest of all professions.

 But the minimum wage law has now forced insurers as employers to act.

In addition to the employees in the collectively agreed salary groups I to VIII (monthly gross salary between 2,803 and 5,473 euros), there are also salary groups A and B.

 Regarding the activities, they are assigned to salary groups I (“only brief training required”) and II (“ Knowledge or skills acquired through scheduled induction”), but paid less. 

In salary group A, the gross monthly salary is so low (1,874 euros in the first year of work and 1,943 euros from the second year of work) 

that, despite a collective bargaining increase on September 1, 2022 , it was not enough to meet the statutory minimum wage requirement.

1 cent too little

According to the Employers' Association of Insurance Companies in Germany (AGV VERS), the gross hourly wage for salary group.

A was EUR 11.57 and EUR 11.99 respectively in the ten months in which there were no special payments ("holiday pay" in May and " Christmas bonus” in November).


“Companies will calculate and pay out the difference to the minimum wage for October. 

In the future, however, this 'shadow calculation' should no longer be necessary," said the deputy general manager of the AGV VERS, Dr. Sebastian Hopfner, on pro-contra request.

 The hourly wage for salary group A – according to Hopfner, this only applies to employees 

who digitize the large volume of paper mail at the insurers – will be increased to EUR 12.50 as of November 1st. Their gross salary is then a flat rate of 2,025 euros gross.


Although the Minimum Wage Act stipulates payment of twelve euros per hour, it does not oblige workers to adjust collective agreements. That's why the unions ver.

di and DBV asked the AGV VERS. For salary group B, no intervention was necessary.

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