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Germany's Minimum Wage Rises to €13.90 on Jan. 1, 2026, in First Step Toward €14.60

Fresh data highlight millions of beneficiaries, with the sharpest effects in hospitality across eastern regions.

Overview

  • About 6.6 million workers are set to benefit from the new floor, with women and eastern states overrepresented; Mecklenburg-Vorpommern has the highest share of affected jobs and Hamburg the lowest, according to official data.
  • Union figures point to roughly 654,000 beneficiaries in Lower Saxony and about 455,000 across Berlin and Brandenburg.
  • Low-wage concentration is highest in hospitality, where 56% of jobs currently pay below €13.90, and in agriculture and forestry at 43%.
  • An Ifo Institute survey finds 22% of affected employers plan job cuts, with particularly high shares in hospitality, retail, textiles, and food manufacturing.
  • Analyses warn net pay increases may be muted by higher social-insurance contributions in 2026, as the mini-job ceiling rises from €556 to €603 and roughly 39% of mini-jobs are affected; a VAT cut for hospitality to 7% was approved to ease pressure.