BERLIN — Germany is poised for a significant increase in its minimum wage over the next year and a half, with plans to raise it by approximately 14%. This adjustment appears to resolve a potentially contentious issue for the newly established government.
A commission composed of both employers and labor unions proposed on Friday that the minimum wage should rise from its current rate of 12.82 euros per hour to 13.90 euros at the start of 2026, followed by an increase to 14.60 euros the subsequent year. Heading the panel, Christiane Schönefeld, acknowledged that this year presented “a particular challenge” due to the stagnant economy and unpredictable economic forecasts. She noted that the discussions were challenging and further complicated by public expectations.
Germany, which stands as Europe’s largest economy, introduced its national minimum wage in 2015. This measure was pushed by the center-left Social Democrats, who were the junior partners in a conservative-led government at the time, as they are now. Initially set at 8.50 euros per hour, the minimum wage level is regularly reviewed by an independent commission. There was one government intervention when, under then-Chancellor Olaf Scholz, a Social Democrat, the wage was increased to 12 euros an hour in 2022—an action fulfilling one of Scholz’s campaign promises.
During the campaigning for this year’s election, the Social Democrats advocated for raising the minimum wage to 15 euros. Conversely, the conservative bloc led by new Chancellor Friedrich Merz strongly opposed any further government-mandated increments. Labor Minister Bärbel Bas, a prominent Social Democrat, indicated her intention to adopt the commission’s recommendation. She expressed confidence in the proposal, stating she “can live well with it.”
While recognizing that the desired increase was more substantial, Bas commended the commission for achieving a consensus on the raise. She reflected, “It seemed for a long while as though we wouldn’t reach an agreement at all, and then, of course, we would have had to discuss within the coalition how to navigate this issue.” The successful outcome of the commission’s deliberations marks a significant step for the German government as it seeks to balance economic policy with labor interests in the face of economic uncertainties.