German government approves the largest minimum wage hike in its history

German government approves the largest minimum wage hike in its history

Germany Approves Record Minimum Wage Increase

The German government has approved the largest minimum wage increase in the nation’s history, to be implemented in two stages across 2026 and 2027.

Two-Stage Wage Adjustment

Under the new plan, the national minimum wage will rise from €12.82 to €13.90 per hour on January 1, 2026. A second increase will follow on January 1, 2027, raising the rate further to €14.60 per hour.

The proposal, first recommended by the Minimum Wage Commission (Mindestlohnkommission) in June, marks the most substantial rise since Germany introduced a statutory minimum wage in 2015.

Impact and Reactions

An estimated six million workers currently earn minimum wage in Germany. Labour Minister Bärbel Bas (SPD) highlighted the positive effects of the decision, stating:

“Millions of employees will now receive noticeably higher pay for their work, and businesses can responsibly spread the rising costs over two years.”

Despite the historic scale of the increase, the new figures still fall short of the €15-per-hour target outlined in the CDU/CSU-SPD coalition agreement.

How Germany Sets Its Minimum Wage

Since its introduction, Germany’s statutory minimum wage has been reviewed and adjusted annually. The amount is determined by the Minimum Wage Commission, which consists of six voting members: two employer representatives, two employee representatives, and two independent academic advisors. These members are nominated by employer and employee organizations and formally appointed by the federal government.

Each year, the commission bases its recommendation on developments in collective bargaining agreements between German trade unions and employers. Its goal is to ensure that the wage level provides adequate protection for employees, supports fair competition, and avoids job losses.

Once the commission reaches a decision, the federal government formally enacts the new minimum wage at the same rate proposed — it cannot alter the figure independently.

Foreign , News , Schengen , Work , Job , Business , Schengen News , Immigration
Blog Categories
Relevant Blogs

Disclaimer

The Think Europe Services website is owned and operated by Think Europe Services Sp. z. o. o., a private international company operating independently from the Polish government. Please note that the information on this website is not intended as professional or legal advice. We make every effort to maintain the accuracy of the content, but it's important to be aware that certain terms, like immigration eligibility criteria, may be subject to change without prior notification. ..see more

In reference to our Job Search Service, we specialize in Resume Crafting, LinkedIn Enhancement, and Resume Promotion. It's crucial to emphasize that we do not promote job opportunities on behalf of international employers or serve as agents for any foreign companies. Our Registration number is KRS 0001007806, our tax identification number is NIP 9512557041, and all our services are exclusively offered at our Registered Center.

Please bear in mind that the content provided here is meant solely for informational purposes and should not be regarded as legal or tax guidance. It is recommended that you seek advice from your own legal and/or tax consultant(s). We do not offer legal or tax advice, and the information we present is of a general nature, not customized for any particular company or workforce. Moreover, it does not represent how we operate in a specific jurisdiction. We do not assume responsibility for the accuracy or timeliness of this information, and we are not liable for any losses that may occur as a result of using or relying on it.