Particle.news
Download on the App Store

Germany Approves Two-Step Minimum Wage Rise to €13.90 in 2026, €14.60 in 2027

The staged rise follows the commission’s June recommendation, drawing sharp pushback over adequacy and costs.

Overview

  • The cabinet decision implements the independent Minimum Wage Commission’s proposal and replaces the current €12.82 statutory floor.
  • Official estimates suggest up to 6.6 million employees could benefit from the higher wage levels.
  • Social groups, including VdK, argue the increase falls short of needs after recent inflation and call for a €15 hourly floor.
  • Small businesses warn they will pass higher labor costs to customers, with a hairdresser citing expected price rises of about 4% to 6%.
  • The change lifts the monthly mini‑job limit to €603 from 2026 due to its legal link to the minimum wage, shifting the lower bound of the mid‑job range accordingly.