German Labor Minister Introduces €15 Minimum Wage
Germany's Federal Labor Minister Hubertus Heil (SPD) has announced that the national minimum wage will increase to €15 per hour in January 2026.
Minimum Wage Set to Rise to €15
Labor Minister Hubertus Heil revealed that Germany's minimum wage, currently set at €12.41 per hour, will rise to €12.82 from January 1, 2025, and reach €15 per hour in 2026. The annual adjustments to the minimum wage are determined by the Minimum Wage Commission (Mindestlohnkommission), which will now assess whether Heil's proposed increase adequately balances the interests of both employees and employers.
Heil emphasized that the increase is a matter of fairness, stating, "It’s about ensuring that people who work full-time can sustain themselves with their income."
Six Million Workers Affected by the Change
Approximately six million people in Germany currently earn the minimum wage, according to Heil. Women and workers in the eastern federal states are disproportionately represented among low-wage earners. Data from the Hans Böckler Foundation's Institute of Economic and Social Research (WSI) in 2022 show that in areas like Sonneberg, Thuringia, 44 percent of employees worked in minimum-wage jobs, followed by 43.1 percent in Teltow-Fläming, Brandenburg, and 40 percent in Saale-Orla, Thuringia.
Ver.di Criticizes Planned Increases as Inadequate
Germany’s largest trade union, ver.di, criticized the planned wage increases for 2024 and 2025 as "completely insufficient." The union is calling for the immediate introduction of a €15 minimum wage, aligning with the EU Minimum Wage Directive, which recommends a minimum wage equivalent to 60 percent of a country's median income.
In a statement, ver.di noted that the current minimum wage has helped reduce wage inequality across Germany. However, they warned that "small increases, as planned for 2024 and 2025, could weaken the positive impact."
Political Backdrop and Opposition
The next federal election is set for September 28, 2025. By the time Heil’s proposal takes effect, the current SPD-Greens-FDP coalition may no longer be in office, as polls indicate declining support for the coalition. Meanwhile, the CDU and AfD are gaining ground, particularly in the eastern regions. Notably, the AfD became the first far-right party to win a state election in Thuringia on September 1. Both the CDU and AfD have voiced opposition to the planned €15 minimum wage, with the AfD previously voting against the rise to €12 in 2021.
On September 22, voters in Brandenburg will head to the polls for another state election, offering further insight into the shifting political landscape.