GERMAN Chancellor Angela Merkel's cabinet has agreed to introduce a minimum wage for four million workers in 12 industry branches in its last meeting before Sunday's general election.
Launching a minimum wage emerged as a key election issue, with the opposition Social Democrats calling for a national standard setting the minimum wage at 8.50 euros ($A12.22) per hour.
However, Merkel's conservative-led coalition rejected a mandatory national minimum wage and instead agreed to introduce it on a sector by sector and regional basis following negotiations between employers and employees.
"Employers and employees do not need to have politicians setting reasonable wage levels that are fair to workers and keep jobs in Germany at the same time," said Labour Minister Ursula von der Leyen.
Germany is one of the few Western countries that does not have a minimum wage.
About 11,000 stonemasons are scheduled next month to become the first to benefit from Merkel's new minimum wage plan, which sets an hourly rate of 10.13 euros in the eastern part of the country and 11 euros in the west.
This will rise to 10.66 euros in the east and 11.25 euros in the west from May 1.
The government plans to roll out a minimum wage set at similar levels to 11 more industry branches from the start of next year.
Construction workers, painters and decorators and security service employees would be among those who benefit.