Overview

• The federal government has codified a minimum wage increase from €12.82 to €13.90 per hour effective January 1, 2026.
• About 17 percent of German employees will see higher pay, with regional peaks of 21 percent in Saxony and 14 percent in Hamburg.
• In Saxony the adjustment adds roughly €28 million to workers’ earnings and impacts 64 percent of hospitality staff, the sector most exposed to the change.
• Women in Saxony are projected to benefit slightly more often than men from the new wage floor.
• The Hotel and Restaurant Association has demanded urgent relief; the CDU–SPD coalition has pledged to trim gastronomy VAT to 7 percent permanently.