Overview

• The coalition agreement between Union and SPD states that a 15-euro minimum wage by 2026 is achievable but leaves the decision to the independent Minimum Wage Commission.
• CDU leader Friedrich Merz emphasized that the agreement is non-binding, asserting that the commission retains full autonomy in determining wage adjustments.
• The Minimum Wage Commission, composed of employer and employee representatives, is set to decide on the next minimum wage adjustment by June 2025, guided by tariff developments and a reference value of 60% of the gross median wage.
• Critics argue that employer influence within the commission could lead to modest wage increases, as seen in past decisions, raising concerns about addressing rising living costs effectively.
• Labor advocates stress the importance of meeting the EU-recommended benchmark of 60% of the gross median wage, which would align with a 15-euro minimum wage by 2026.