Germany implements highest minimum wage increase in a decade

Wednesday 29 October 2025 - 16:05

By: Sahili Aya

Germany implements highest minimum wage increase in a decade

The German government has approved the largest increase in the minimum wage since its creation ten years ago. The wage, currently €12.82 gross per hour, will rise to €13.90 at the start of 2026, and then to €14.60 on January 1, 2027, representing a total increase of 13.9%. Around six million workers will benefit from the increase.

The increase is slightly below what the Social Democrats, part of Chancellor Friedrich Merz’s ruling coalition, had advocated—they had pushed for a €15 minimum wage by 2026. The government followed recommendations from an independent commission representing both employers and employees.

Germany’s minimum wage is currently the fourth highest in the EU, behind Luxembourg, Ireland, and the Netherlands. Introduced in January 2015 at €8.50, the minimum wage was initially seen as a major reform in a country with a long-standing tradition of limited government intervention in wage relations.