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Germany is giving nearly two million workers a 25 percent pay rise

As many as 10 million workers could receive a pay rise in Germany under plans unveiled by the country's incoming government.

On Wednesday, a three-party coalition agreed a deal to form a new government to replace longstanding chancellor Angela Merkel. As part of the agreement, they want to increase the minimum wage from €9.60 ($10.70) an hour to €12 ($13.46) an hour, per CNN. A rise of 25%.

In the text of the deal, Olaf Scholz, leader of the Social Democratic Party, said that the increase would lead to salary increases for 10 million people, but didn't specify when the changes would be implemented.

There are around 1.4 million people earning the minimum wage in Germany. A further seven million are counted as low earners, according to national statistics.

Scholz's 10 million figure could reflect the fact that some sectors link the lower range of wage settlements to the minimum wage, said Carsten Brzeski, the global head of macro for ING.

The move is an increase on a raise of €10.45 ($11.72), which is scheduled for July 2022.

~ Via CNN