BERLIN, June 26 Reuters A German governmentappointed commission on Monday proposed raising the minimum wage to 12.41 euros 13.53 per hour from 2024 and to 12.82 euros from January 2025, although analysts said the hike was not enough to compensate for inflation.

Raising the minimum wage, which increased to 12 euros per hour in October from 10.45, was one of the key election promises of Chancellor Olaf Scholz and his Social Democrats. A hike would be likely to directly affect almost 6 million employees in Germany.

The country has the secondhighest minimum wage in the European Union behind Luxemburg, which mandates a monthly minimum of 2,387 euros. If the proposed increase in Germany is approved, the euro zone39;s largest economy would see workers earn at least 2,054 euros a month.

Only six EU countries have a national minimum wage above 1,500 euros per month, including Luxembourg, Germany, Belgium, the Netherlands, Ireland and France, Eurostat data showed.

Stubbornly high inflation and interest rate hikes by the European Central Bank have been significantly dampening people39;s purchasing power in Europe39;s biggest economy. The business mood has also been declining.

The sharp rise in inflation is hitting lower incomes particularly hard so another hike in the minimum wage is justified but the rise proposed this time is too small, said Carsten Brzeski, global head of macro at ING.

The increase now proposed is very moderate and is too little to make up for the…