Significant increase in the minimum wage in Germany: The 2027 period takes shape.

The Federal Ministry of Labor and Social Affairs of Germany has officially announced that the hourly minimum wage across the country will be increased in two stages from the current €12.82. This change is expected to provide significant financial improvement for workers.

According to the new rates, the minimum wage will rise to €13.90 on January 1, 2026, and to €14.60 on January 1, 2027. This increase will be an important support, especially for low-income workers. It is expected that 6.6 million employees will benefit from this change.

The proposal to raise the minimum wage was presented by the Minimum Wage Commission on June 27. The Cabinet has decided to implement the commission's proposal as is. This process is subject to a mechanism that cannot be altered by the government, and thus will only come into effect through legal regulations.

The increase in the minimum wage is seen as an important step in terms of Germany's social policies and aims to balance economic growth with social stability. This change may also affect demand in the country's labor market and increase the financial burdens on employers.

The increase in workers' purchasing power could positively contribute to consumption and, consequently, economic growth. However, it remains to be seen how employers will cope with this increase and how it will affect employment. This rise in the minimum wage could also have long-term effects on Germany's economic sustainability.