The German government has approved the highest minimum wage increase in history. The increase will take effect in two phases, in 2026 and 2027.
According to German-based media outlet I Am Expat, the German government’s CDU/CSU-SPD coalition has approved a two-phase minimum wage increase. The first phase will take effect on January 1, 2026. The hourly wage will increase from 12.82 euros to 13.90 euros.
The second phase will take effect on January 1, 2027. The hourly wage will increase from 13.90 euros to 14.60 euros.
The Minimum Wage Commission first proposed the increase last June. It is the highest minimum wage increase in German history.
Around sixty million people in Germany are employed on the minimum wage. German Labor Minister Bärbel Buss expressed hope that the newly announced wage will allow millions of employees to earn more for their work.
However, this historic increase is still less than the 15 euros per hour wage promised in the CDU/CSU-SPD coalition agreement.
The minimum wage in Germany increases every year. The Minimum Wage Commission decides how much to increase.
The commission consists of 2 employers, 2 employees and 2 advisors. New members are replaced every 5 years.
Every year, the commission sets the minimum wage in accordance with agreements or contracts between German trade unions and employers. They look at whether the wage is fair, whether workers are protected, whether competition is fair and whether jobs are being lost.
The government implemented the new minimum wage in accordance with the commission’s recommendations, because the country’s government cannot set the minimum wage independently.
