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

The move follows a unanimous commission recommendation, taking effect by cabinet regulation without further parliamentary approval.

Overview

  • Around six million employees are set to gain, with the government projecting extra employer costs of about €2.18 billion in 2026 and up to €3.44 billion in 2027.
  • SPD leaders framed the decision as a party success, while employers’ federation BDA said the independent commission—not politicians—made the call, calling SPD claims political grandstanding.
  • Green and Left lawmakers argued the increases are insufficient and too slow to offset inflation, with Greens urging reforms to the Minimum Wage Commission.
  • Labour Minister Bärbel Bas called it the largest social-partnership-agreed rise since the wage’s introduction, as IAB analysts said it would shrink low pay but require company adjustments.
  • With the planned levels, Germany would rank near the top of EU minimum wages, trailing only Luxembourg based on current comparisons.