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Germany Moves Toward €15 Minimum Wage by 2026

The Minimum Wage Commission adopts a guideline aligning with the EU's 60% median wage benchmark, while studies emphasize the urgency of the increase.

  • 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.
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