Germany is proceeding with the increase in the minimum wage in early 2026.

The minimum wage will increase to € 14.60 ($ 17.11) by 2027 from the 12.82 euros today, according to the proposals of a Commission appointed by the government, less than the government’s coalition had initially agreed.

Increasing the minimum wage can make businesses difficult to hire staff, as the highest labor costs can force businesses to cut jobs or reduce working hours. This risk is particularly high for small businesses and low -specific workers, possibly leading to higher unemployment, Reuters notes.

Increase in 2 doses

Initially, the minimum wage is to rise to 13.90 euros in early 2026.

The proposal of the Commission, an institution consisting of representatives of employers and trade unions, must be implemented by the Ministry of Labor.

German Labor Minister Barbel Bas welcomed the agreement, which “shows that the social cooperative in this country is operating”, and asked the government to make this adaptation legally binding as of January 1, 2026.

As of 01/01/2026, Germany will have the second highest minimum wage in the European Union after Luxembourg (2,638 euros), according to Eurostat data from 2025.

Three other EU countries have a national minimum wage of more than 2,000 euros per month – Belgium, the Netherlands and Ireland.