Overview

• Germany's minimum wage is set to rise from €12.82 to approximately €15 by 2026, aligning with 60% of the median wage as recommended by the EU directive.
• The Hans-Böckler-Stiftung and OECD studies indicate that a €15 minimum wage is already warranted in 2025 to meet the benchmark.
• The Minimum Wage Commission has adopted a new guideline to incorporate the 60% median wage target in its calculations starting in 2026.
• Historical shortfalls in Germany's minimum wage have primarily offset inflation but lagged behind productivity and wage growth, according to researchers.
• The European Court of Justice is expected to rule on the legality of the EU minimum wage directive in May 2025, potentially influencing future policy decisions.