Germany's minimum wage to rise to $17 per hour by 2027

Minimum wage to increase to $16.2 in 2026, then to $17 a year later

By Mucahithan Avcioglu

ISTANBUL (AA) - The minimum wage in Germany will gradually increase to €14.6 ($17) per hour by 2027, up from the current €12.82, according to a statement released on Wednesday by the German Federal Ministry of Labor and Social Affairs.

The federal Cabinet approved the raising of the minimum hourly wage in the country from the current €12.82 to €13.90 on January 1, 2026, and then to €14.60 a year later.

Previously, the government-appointed Minimum Wage Commission, which included employer and employee representatives, proposed on June 27 raising the minimum hourly wage to €14.60 by 2027.

The minimum wage increase would have to be implemented through a legal regulation by the Federal Ministry of Labor and Social Affairs. The federal government has no authority to change the commission's proposal.

"Today's decision ensures that the hard-won compromise of the Minimum Wage Commission is now legally binding. With the two-stage increase, millions of employees will receive noticeably more for their work—and companies can responsibly spread the rising costs over two years," Labor Minister Barbel Bas said.

"Overall, this means an increase in the minimum wage of almost 14%—the largest wage increase agreed upon by social partners since the introduction of the minimum wage," she added.

The legal minimum wage in Germany was first set at €8.50 gross per hour in 2015 and has been increased several times since then.

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