German government announces new minimum wage

Germany’s Minimum Wage Commission (Mindestlohnkommission) has announced how much the minimum wage (Mindestlohn) will rise in 2026 and 2027.

German minimum wage will be 13,90 euros in 2026

The government has announced that on January 1, 2026, the German minimum wage will increase from 12,82 euros to 13,90 euros per hour. A second increase will come on January 1, 2027, when the minimum wage will rise to 14,60 euros per hour.

During its election campaign, the SPD called for the minimum hourly wage to increase to 15 euros. After the CDU and SPD joined forces following the election, their coalition agreement stated that the 15-euro hourly wage would be “achievable” by 2026.

The statutory minimum wage applies to all workers in Germany over the age of 18 - including part-time- and full-time workers, foreign workers, seasonal workers, and people who work for foreign employers. It also applies to people who work in marginal employment (so-called “mini” and “midi jobs”).

How is the minimum wage decided in Germany?

Germany introduced a statutory minimum wage in January 2015. Since then, the national minimum wage has increased every year. The scale of the rise is always decided by the Mindestlohnkommission in Berlin.

The Mindestlohnkommission is made up of six members; two employers, two employees and two academic advisors who are recommended by employer and employee organisations and appointed by the federal government. The six members have voting rights, and the commission is led by a chairperson. New representatives are appointed to these roles every five years.

Every year, the commission sets a minimum wage based on the development of collective bargaining agreements settled between German trade unions and employers. The commission is also tasked with assessing whether the minimum wage “provides adequate minimum protection for employees, allows for fair competition and does not lead to job losses”.

Once the commission has settled on a figure, the German government can introduce the new minimum wage. The new minimum wage must be the same as the amount suggested by the commission, as the government cannot independently decide a national minimum wage amount.