Minimum wage in Germany to hit €14.60 by 2027
Germany aims to raise its minimum wage in two stages to €14.60 per hour by 2027, according to DW.
The proposed stages are from €12.82 to €13.90 at the start of 2026, followed by a second increase to €14.60 in 2027, which would raise monthly earnings to nearly €2,500 for full-time workers.
The decision, recommended by Germany’s Minimum Wage Commission, ensures the minimum wage keeps pace with broader wage growth, though this proposal still falls short of earlier ambition of reaching €15 by 2026.
Germany’s Minimum Wage Commission is composed of union and employer representatives who review wage adjustments every two years based on national income trends. These proposals must be implemented by Germany’s Labor Ministry.
The move will give Germany the second-highest minimum wage in the European Union, just behind Luxembourg.
According to Eurostat data, only four other EU countries have monthly minimum wages above €2,000, including Luxembourg (€2,638), Belgium (€2,111.89), Ireland (€2,282), and the Netherlands (€2,380.32).
Impact on Labor Market and Economic Backdrop
The proposed minimum wage hike could make it more difficult for companies to hire, as higher labor costs could lead businesses to lay off employees or reduce working hours.
The number of unemployed people in Germany rose to about 3 million in May 2025, the highest May figure since 2010, according to the national employment agency. This marks a sharp increase from 2.2 million in May 2022.
At the same time, job vacancies have been declining since late 2021, according to ING.
A recent Ifo employment barometer also showed that German businesses remain hesitant to hire, despite modest improvements in the economic outlook.
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