Germany's Minimum Wage to Increase to €14.60 by 2027

The independent Minimum Wage Commission has unanimously decided to raise the minimum wage to 14.60 euros per hour through a phased approach. Initially, the minimum wage will increase to 13.90 euros in January 2026, followed by a further rise to 14.60 euros in January 2027. This adjustment comes as the current minimum wage stands at 12.82 euros.

Although the Social Democratic Party (SPD) aimed for a minimum wage of 15 euros by 2026, this target was not incorporated into the coalition agreement. The decision reflects ongoing discussions about the adequacy of wages in relation to living costs, particularly in urban areas.

Some economists advocate for a regional minimum wage to better address the disparities in living expenses across Germany. The federal government is now tasked with implementing the commission's recommendation, which is determined every two years in consultation with trade unions and employer associations.