New minimum wage from January 1, 2026: The national level rises by 8.42% with a higher hourly wage – followed by a further 5.04% for 2027!

The year is drawing to a close – and with it a look back at months full of contrasts. While some are closing 2025 as a chapter of success, for others it was a constant navigation through rising costs and new challenges. One thing is certain: Millions of people in Germany work for the minimum wage every day, but rents, food and the cost of living are rising inexorably. One look at this year’s mulled wine prices at the Christmas markets is enough to show how much every euro now has to be weighed up. Everyday life is becoming more expensive, the leeway in our wallets is shrinking. It is precisely against this background that the Federal Cabinet has acted together with Federal Minister Bärbel Bas: An increase in the minimum wage was necessary. With the adoption of the Fifth Minimum Wage Adjustment Ordinance, millions of employees can not only look forward to an increase from 2026 – a further adjustment is already planned for 2027.

While the statutory minimum wage was still 12.82 euros in 2025, it will initially be raised to 13.90 euros per hour from January 1, 2026. In a further step, it will rise to 14.60 euros on January 1, 2027. This represents an initial increase of 8.42 percent, followed by a further 5.04 percent in the following year – resulting in a total increase of 13.88 percent. The two-stage increase means that employees receive noticeably more for their work, while companies can spread the rising costs over a period of two years. Overall, this means an increase in the minimum wage of almost 14%. This is the largest wage increase agreed by the social partners since the introduction of the minimum wage.

With a few exceptions, the new minimum wage will apply to almost all employment relationships in Germany from 2026. Apprentices are not included, as they do not fall under the scope of the Minimum Wage Act. In addition to the statutory minimum wage, higher minimum wages can be set through special regulations, for example in the building cleaning, electrical and roofing trades.