Germany to raise minimum wage - Decision aims to fight poverty and improve living conditions
Germany will raise the minimum wage in the coming years, dividing the process into two phases. The move is aimed at fighting poverty and improving living conditions, although employers warn of the economic consequences.
Germany's minimum wage will rise from €12.82 per hour to €14.60 by 2027, in two stages. At the beginning of 2026, the statutory basic wage paid to employees is to first rise to €13.90, before rising by another €0.70 a year later.
The Minimum Wage Commission, made up of senior union and employer representatives, votes on adjustments every two years, taking into account wage increases. According to the head of the commission, this year's proposed increases were unanimously supported.
In the campaign leading up to February's federal elections, Germany's Social Democrats (SPD), now a junior partner in the new coalition government, had promised to raise the minimum wage to 15 euros.
"15 euros is the minimum for a life with dignity. Anyone who works full-time should not be forced to supplement their income or live in poverty in old age," said SPD representatives.
A statutory minimum wage is considered an important tool to combat poverty. According to official figures, 15.5% of the population, or around 13.1 million Germans, were at risk of poverty last year.
The European Union defines anyone earning less than 60% of the median income of a population as at risk of poverty. In Germany, this would apply to households earning €1,378 or less per month after taxes and social security contributions.
On the other hand, employers had warned of the serious economic consequences of a significant increase in the minimum wage.

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