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German Minimum Wage Panel Agrees to Raise Rates to €14.60 by 2027

Economic pressures convinced the commission that staged increases will bolster incomes for millions without overburdening employers.

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Overview

  • The commission voted unanimously on June 27 to lift the current €12.82 wage to €13.90 on January 1, 2026, and to €14.60 on January 1, 2027.
  • Chair Christiane Schönefeld hailed the measure as a viable compromise reflecting recent tariff settlements and economic realities.
  • The SPD’s push for a €15 minimum wage in 2026 fell short, prompting party leaders to consider further political action.
  • Employer bodies cautioned that larger increases could intensify recessionary pressures and risk job losses.
  • Labour representatives project that about six million workers will see their monthly pay rise by roughly €190 in 2026 and €310 in 2027.