The German government on Wednesday approved a plan to raise the national minimum wage to €14.60 per hour, the largest increase since the policy was introduced a decade ago.
The rise will take effect in two stages: from the current €12.82 ($14.90) to €13.90 in January 2026, and then to €14.60 on January 1, 2027.
“Millions of employees will receive noticeably more for their work, and companies can responsibly spread the rising costs over two years,” said Labour Minister Baerbel Bas after the cabinet approved the measure.
Bas, a senior member of the centre-left Social Democratic Party (SPD) — the junior partner in Chancellor Friedrich Merz’s conservative-led coalition — described the increase as “an important step towards greater fairness and recognition for those who keep our country running day in and day out.”
According to the Labour Ministry, around six million workers will benefit from the higher wage.
The decision follows a recommendation made in June by an independent commission overseeing Germany’s minimum wage policy. The panel, established when the country introduced its statutory minimum wage in 2015, includes economists, trade union officials, and employer representatives.
However, the approved increases fall short of the €15-per-hour target discussed in the coalition agreement between the CDU/CSU and the SPD. Some SPD lawmakers have urged the government to bypass the commission and legislate the higher rate directly, a move conservatives have opposed.
The coalition accord described a €15 minimum wage by 2026 as “achievable,” but stopped short of making it a firm commitment.
AFP
