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Germany Approves Phased Minimum Wage Rise, Reshaping Minijobs

Phased wage hikes will lift minijob caps, shifting millions into social-insurance contributions starting in 2026.

Overview

  • The minimum wage will rise to €13.90 per hour in January 2026 and to €14.60 per hour in January 2027.
  • Monthly minijob earning limits will increase to €603 in 2026 and €633 in 2027, affecting an estimated 6.6 million employment relationships.
  • Positions that exceed the new minijob cap will become subject to social-security contributions of about 30 percent, raising employers’ actual hourly costs to roughly €18 and spurring interest in midjobs.
  • Women will benefit disproportionately, with about 20 percent of female-held jobs seeing wage increases compared to around 14 percent for men.
  • Employers and workers are adapting to structural shifts as midjob upper earnings limits rise to €2,000 gross per month from 2026, offering reduced social-contribution rates relative to full insurance.