Germany Minimum Wage Increase: 14.60 Euros Until 2027

Step Towards Minimum Wage Increase in Germany

According to a statement by the German Federal Ministry of Labor and Social Affairs, the hourly minimum wage in the country will first rise from 12.82 euros to 13.90 euros on January 1, 2026, and then within a year it will be increased to 14.60 euros. This change has been approved by the cabinet.

Minimum Wage Commission Proposal

The government has decided to raise the current minimum wage to 14.60 euros by 2027, evaluating the proposal submitted by the Minimum Wage Commission, consisting of employer and employee representatives, on June 27. This legal regulation will be enforced by the Federal Ministry of Labor and Social Affairs.

Impact on Employees

The German Federal Statistical Office (Destatis) estimates that approximately 6.6 million workers will benefit from this increase. The legal minimum wage was first set at 8.50 euros per hour gross in 2015 and has been updated several times since then.

Inter-Party Debates

During the electoral process, the Social Democratic Party (SPD) and the Greens argued for a minimum wage of 15 euros, while the Christian Democratic Union/Christian Social Union (CDU/CSU) parties aimed to maintain the autonomy of the Minimum Wage Commission.

Financial Burden on Employers

The minimum wage increase is projected to raise companies' salary costs by approximately 2.18 billion euros in 2026, and by about 3.44 billion euros in 2027. Some critics argue that this increase may jeopardize employment and that high labor costs will make it difficult for companies to hire personnel.