Overview

• Germany's minimum wage is currently €12.82 and is likely to rise to €15 by 2026, aligning with the EU's 60% median wage directive.
• The Hans-Böckler-Stiftung study and OECD data suggest that a €15 minimum wage is necessary to meet EU benchmarks.
• The European Court of Justice will review the EU directive on minimum wages in May 2025, with the Minimum Wage Commission's decision expected in summer 2025.
• Past minimum wage increases, such as the 2022 hike to €12, have significantly reduced wage inequality, particularly benefiting women and workers in East Germany.
• The Minimum Wage Commission has faced criticism for relying on past tariff developments rather than broader economic indicators in its decision-making process.