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Government to decide on minimum wage without consultations in future

The government is to set the minimum wage and the guaranteed wage minimum in a decree in the future, according to the draft bill on the National Economic and Social Council (NGTT) submitted to parliament by the government on Monday.

The proposal drops the obligation in current legislation according to which the government fixes the minimum wage in a decree based on consultations with the National Interest Coordination Council OÉT).

The new NGTT would replace the currently existing various interest coordination bodies, which are to be dissolved. Of these bodies to be abolished, OÉT, a tripartite body on which employees', employers and the government has been represented, has been the forum for national wage negotiations on a national wage recommendation and on the minimum wage, among others. In addition to employers' and employee representatives, civil organizations, academic and churches' representatives will sit on NGTT.