Federal Cabinet endorses minimum wage increase to 13.90 euros by 2026

(de-news.net) – In accordance with a unanimous recommendation issued by the independent Minimum Wage Commission — an advisory body composed of representatives from both employer associations and trade unions — the German federal government has formally approved a gradual increase in the statutory minimum wage. The Federal Cabinet enacted a corresponding ordinance stipulating that the hourly minimum wage, currently set at 12.82 euros, will rise to 13.90 euros as of January 1, 2026. A subsequent adjustment will follow one year later, bringing the rate to 14.60 euros per hour by 1 January 2027.

The said legislative measure was introduced in the context of sustained political advocacy for a more substantial increase, with some parties and labor organizations calling for a raise to 15 euros per hour. Although the Social Democratic Party (SPD) had initially endorsed this higher benchmark, it ultimately consented to the more moderate progression proposed by the Commission. Federal Labor Minister Bärbel Bas (SPD) characterized the nearly 14 percent cumulative increase as a meaningful advancement toward greater social justice and a tangible expression of appreciation for the essential contributions of workers who sustain the country’s daily operations.

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