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German Cabinet Approves Two-Step Minimum Wage Rise to €14.60 by 2027

The government implemented a unanimous recommendation from the minimum wage commission by regulation.

Overview

  • The floor rises from €12.82 to €13.90 in January 2026 and to €14.60 on January 1, 2027.
  • Official data indicate roughly six to 6.6 million jobs will be covered by the higher rates.
  • The government projects added employer costs of about €2.18 billion in 2026 and up to €3.44 billion in 2027, as researchers forecast a smaller low-wage sector.
  • Labour Minister Bärbel Bas calls it the largest social-partner-agreed hike since the wage was introduced, while business groups caution about job and cost pressures.
  • Greens and Left parties argue the raise is insufficient and urge €15 and commission changes, as the commission’s chair warns against political interference and the Union rejects a politically set floor.