Germany's Minimum Wage Hike Proposal for 2026

Germany's Labour Minister, Hubertus Heil, has proposed increasing the minimum wage to over 15 euros per hour starting in 2026. This aligns with the EU minimum wage directive, requiring it to be at least 60% of the average wage for full-time employees. The current minimum wage is 12.41 euros per hour.

Germany is considering a significant increase in its minimum wage to over 15 euros per hour from 2026, according to Labour Minister Hubertus Heil. Heil addressed a government-appointed minimum wage commission, urging them to adhere to the EU minimum wage directive, which mandates a wage of at least 60% of the average for full-time employees.

The German Trade Union Confederation, DGB, has calculated that this would equate to 15.27 euros per hour by 2025. At present, the minimum wage stands at 12.41 euros per hour, with an anticipated rise to 12.82 euros in 2025.

This proposed increase was a key promise by Chancellor Olaf Scholz and his Social Democrats in the 2021 federal election. The minimum wage commission is expected to decide on the 2026 increase by mid-2025, but it's uncertain if they will adopt the minister's recommendation.

(With inputs from agencies.)