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German Cabinet Approves Biggest Minimum-Wage Rise Since 2015, Reaching €14.60 by 2027

The decision implements the wage panel’s June proposal by regulation, lifting pay for around six million lower‑paid workers.

Overview

  • The statutory floor will increase in two steps: to €13.90 on 1 January 2026 and to €14.60 on 1 January 2027.
  • The change is enacted by cabinet regulation based on the Mindestlohnkommission’s recommendation and does not require Bundestag or Bundesrat approval.
  • Official estimates indicate roughly six to 6.6 million jobs will be affected, with gains concentrated among women and workers in eastern Germany.
  • Government calculations put additional employer wage costs at about €2.2 billion in 2026 and €3.4 billion in 2027, with only moderate sectoral price effects expected.
  • Political debate persists as the SPD pushed for €15 and the commission’s chair cautioned against political pressure, while the raise also lifts minijob thresholds and reinforces time‑recording rules enforced by the customs authority.