Approximately 6.6 million employment contracts in Germany will be impacted by the minimum wage increase to €13.90 per hour effective January 1, 2026, according to the Federal Statistical Office. This represents roughly 17% of all labor agreements, with affected workers seeing raises of up to 6% above current levels.
Women disproportionately benefit from the adjustment, with 20% of female workers affected compared to 14% of male workers. Residents of eastern German regions will also see significant impacts.
A further increase to €14.60 per hour will take effect on January 1, 2027, projected to affect 8.3 million employment relationships.
The wage adjustments were determined by an independent commission comprising worker and employer representatives. While the governing coalition had previously agreed to pursue a €15 minimum wage, current economic challenges led to the scaled-back increase. Coalition partners acknowledged the commission’s statutory authority over minimum wage decisions.