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Germany’s Minimum Wage Hike to Benefit Millions Across Workforce

Official estimates quantify how the planned increases will boost wages for millions before they take effect.

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Overview

  • Labour Minister Bärbel Bas will formalize the Minimum Wage Commission’s unanimous recommendation to raise the floor to €13.90 per hour from January 2026 and to €14.60 from January 2027.
  • Statistisches Bundesamt projects up to 6.6 million jobs—17 percent of all employment—will gain an average 6 percent pay increase worth €400 million in 2026.
  • When the second stage takes effect in 2027, as many as 8.3 million jobs—21 percent—may see a further average raise of 4 percent valued at €430 million.
  • Women and workers in eastern Germany stand to benefit disproportionately, with about 20 percent of their jobs rising to the new floor compared with 14 percent for men and 16 percent in western regions.
  • Hospitality (56 percent) and agriculture, forestry and fisheries (43 percent) lead all sectors in the share of roles crossing the new minimum wage thresholds.