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German Firms Report Broad Impact From €13.90 Minimum Wage as Two in Five Plan Price Rises

A DIHK survey highlights sector disparities with wage spillovers reaching beyond minimum‑pay roles.

Overview

  • About half of 15,000 surveyed companies say the new wage floor affects them, including roughly one in four directly.
  • Roughly 40% plan to raise prices to offset higher personnel costs, and 13% expect to cut staff, rising above 20% in retail and hospitality.
  • Employers report knock‑on adjustments across pay bands, with 40% lifting wages above the minimum and nearly half of industrial firms doing so.
  • Exposure is uneven across sectors, with about half of gastronomy workplaces paying the minimum, 38% of retailers reporting higher wages, and only 17% of construction firms affected.
  • The increase took effect on January 1 alongside a higher €603 monthly mini‑job cap, a further rise to €14.60 is scheduled for early 2027, and DIHK’s leader warns of investment headwinds and urges policy countermeasures.