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Germany Moves Closer to €15 Minimum Wage Target by 2026

SPD and CSU leaders reaffirm commitment to EU-aligned wage benchmark as employer groups caution against economic risks.

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Thorsten Frei (CDU)

Overview

  • SPD leader Lars Klingbeil expressed confidence that the independent Minimum Wage Commission will implement the €15 minimum wage by 2026 under its new EU-aligned mandate.
  • CSU leader Markus Söder also stated that the €15 target is achievable, emphasizing adherence to the coalition agreement and the commission's independence.
  • The Minimum Wage Commission, which adjusts wages biennially, is now required to comply with the EU directive mandating minimum wages at 60% of median income.
  • Employer associations warn that a steep increase to €15 could harm small and medium-sized businesses, leading to higher unemployment, insolvencies, and inflation.
  • The current minimum wage stands at €12.82 as of January 2025, with the commission's next decision expected mid-year to determine further adjustments.