Overview
- Germany’s statutory minimum wage will increase from €12.82 to €13.90 on 1 January 2026 and to €14.60 on 1 January 2027, following a decision by the government’s wage commission.
- Official data indicate about 6.6 million employees—roughly 17% of the workforce—earn below €13.90 today, with women (20% of jobs) and eastern states (about 20% of jobs) more affected than men (14%) and western states (16%).
- Exposure is highest in hospitality (56% of jobs) and in agriculture and forestry (43%), while around 39% of minijobs are affected and the monthly minijob ceiling will rise from €556 to €603 in January.
- An Ifo Institute survey reports 22% of affected employers plan to cut jobs, with much higher shares in hospitality (77%), retail (71%), textiles and apparel (62%), and food and tobacco manufacturing (59%).
- Independent Datev payroll modeling finds 2026 tax and social‑security changes will leave many workers with only small net gains or even lower net pay—for example a single on €5,500 gains €64 for the year, while a single parent on €6,000 loses €177—while hospitality receives a VAT cut to 7% from 1 January.