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23h ago

Germany Confirms Phased Minimum Wage Hikes to €14.60 by 2027

Labour Minister Bärbel Bas says the measure could lift incomes for millions of workers across Germany.

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Von der geplanten Erhöhung des gesetzlichen Mindestlohns auf 13,90 Euro profitieren im kommenden Jahr bis zu 6,6 Millionen Menschen. Dies sind 17 Prozent oder etwa jedes sechste Beschäftigungsverhältnis in Deutschland.
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Overview

  • The federal government has accepted the independent Minimum Wage Commission’s recommendation to raise the statutory wage to €13.90 in January 2026 and to €14.60 in January 2027.
  • Destatis projects the first increase will benefit up to 6.6 million jobs and boost total earnings by about 6 percent (€400 million) based on April 2024 data.
  • The second hike is estimated to aid 8.3 million positions and raise affected workers’ collective pay by roughly 4 percent (€430 million).
  • Women and employees in East Germany stand to gain most, with about 20 percent of their jobs affected compared with 14 percent for men and 16 percent in West Germany.
  • Hospitality (56 percent) and agriculture, forestry and fisheries (43 percent) will see the highest shares of positions lifted, though figures may overstate gains by excluding wage growth since April 2024.