The timeliness importance of this economic-political discussion, which focuses on the assurance of growth and employment as well as social justice and allocation, induces a scientific consideration of the definition of collective agreements and the introduction of a legal minimum wages in Austria and Germany. Based on a systematic literature research, this thesis analyses the current methods of determining minimum wages and questions the need of the introduction of a legal definition.The results show that beside many parallels between the German and the Austrian systems of minimum wages, several clear differences can be found. Although a legal minimum wage is currently defined in both EU member states, the German system is meant to be changed from 2015. The collective agreements define minimum wages in Austria, whereas labor agreements do so in Germany. Nevertheless, a significantly higher acceptance of these definitions can be found in Austria: 98 % of all Austrian employments answer to the collective contracts, whereas only 58 % German employments comply with the labor agreements. The low collective commitment in Germany may be explained by the so called freedom of association: German labor agreements are only valid for members of collectives or unions which are based on a voluntary membership whereas collective agreements in Austria are regulated by law. One main difference relies furthermore in the so called outsider-effect on the employee side which can only be found in Austria.