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German Minimum Wage Rise to €13.90 Triggers Price Plans and Pay Ripple Effects

A DIHK survey of 15,000 firms reports broad price pass‑through plans with selective staff reductions.

Overview

  • Effective January 1, the statutory floor increased from €12.82 to €13.90, the mini‑job cap rose to €603 per month, and a further lift to €14.60 is scheduled for early 2027.
  • About half of companies report direct or indirect impacts from the new wage level, including one in four that previously paid below the new threshold.
  • Roughly 40% of surveyed firms plan to raise prices to offset higher personnel costs.
  • Thirteen percent expect to reduce staff, with reported intentions exceeding 20% in retail and hospitality, while construction reports far lower exposure at about 17%.
  • Around 40% say they are increasing pay above the minimum to maintain wage differentials—nearly half in industry—as DIHK warns of investment headwinds and unions defend workers’ gains.