NEWS

Germany: New Increase in the Minimum Wage from January 1, 2026 

The German minimum salary will rise again on January 1, 2026.
Share:

Table of Contents

Consultation on Posting of workers to EU, EEA and Switzerland​

From January 1, 2026, Germany will implement one of the most significant increases in the minimum wage in its recent history, with major implications for the labor market, low-wage workers’ incomes, and the country’s economic dynamics. The decision stems from a recommendation by the Minimum Wage Commission—an independent body made up of representatives of employees and employers—and the subsequent approval by the German federal government. 

Currently, the statutory minimum wage in Germany is €12.82 gross per hour. As of January 1, 2026, this threshold will rise to €13.90 gross per hour, representing an 8.42% increase compared to the current level. The increase does not stop there: the Commission has in fact planned a second step for January 1, 2027, when the minimum wage will rise further to €14.60 gross per hour, bringing the overall increase from 2025 to 2027 to nearly 14%. 

Objectives and benefits for millions of workers 

This adjustment will directly affect around 6.6 million employment contracts, representing 
a significant share of the German workforce employed in low-wage sectors. For full-time workers, the increase in the minimum wage will translate on average into about €190 more in gross monthly income—a tangible benefit for households and overall purchasing power. 

The official motivations behind the increase are linked to the desire to strengthen social justice, combat job insecurity, and support the income of the most vulnerable segments of the labor market. The German Minister of Labor described the increase as “a significant step forward” in recognizing the contribution of workers who are essential to the everyday functioning of society. 

Criticism and the economic debate 

However, the minimum wage increase is not without criticism. According to a recent report by the Ifo Institute, more than one in five companies surveyed expects to reduce jobs in response to higher labor costs, while nearly one third of the firms interviewed plan to cut investments in the coming years. 

The political and economic debate is intense: on the one hand, supporters of the increase highlight the social benefits and the reduction of inequalities; on the other, critics and business representatives warn of risks to competitiveness and employment, especially in low-productivity sectors. In any case, Germany is preparing for a new phase in its wage policy, in line with trends toward minimum wage adjustments in many European countries.

Regulatory Framework

Authority Source Number Article Type Date Link
A&P related service:

Posting Workers to EU, EEA and Switzerland

Studio A&P provides assistance to companies posting workers abroad, taking care of all requirements provided by EU and national legislation, such as Posting declaration, A1 Certificate, Adjustment to local minimum wages and additional national mandatory requirements (eg. BTP Card, REA enrollment, IDO6 etc.).

Contact us for this service

Form ID: “11”

Complete the form to get a response from our experts

Related Info-sheet

Remuneration
Directive (EU) 2022/2041, which entered into force on 25 October 2022, establishes a new European framework to ensure adequate minimum wages and to strengthen collective bargaining in the Member States....
Remuneration
EU Directive 2023/970, in force since 10 May 2023, obliges Member States to monitor, prevent, and sanction pay discrimination, strengthening pay equality oversight in the EU labour market....
Loading...

Related News

Remuneration
The CJEU upholds the overall validity of Directive 2022/2041 on minimum wages and annuls two provisions that exceed EU competences, clarifying the limits of EU action in wage matters....

More related Services

No data was found