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Germany’s 2026 Changes Take Effect: Minimum Wage Rises as Social-Insurance Ceilings and Everyday Costs Shift

New payroll modeling shows tax relief is partly outweighed by higher health contributions and raised assessment limits, leaving some workers with less net pay.

Overview

  • From 1 January, the statutory minimum wage increases to €13.90 per hour and the monthly minijob limit moves to €603.
  • The contribution assessment ceilings rise in 2026, including to €8,450 per month for pension/unemployment insurance and €5,812.50 for health/nursing care, with the insurance obligation threshold reported at €6,540.
  • Datev payroll simulations indicate married high earners on €9,000 a month lose about €464 net (around €442 with two children), and some low earners also slip in net terms as statutory health contributions are set to climb again.
  • Consumer-facing changes include a cut in VAT on restaurant food to 7% from 19% and a higher nationwide Deutschlandticket price of €63 per month.
  • Administrative and EU deadlines follow soon after, with certain older German driving licences expiring on 19 January 2026 and a mandatory online cancellation button for web contracts due from 19 June 2026.