The German federal cabinet has approved the strongest increase in the statutory minimum wage since it was introduced ten years ago. The draft regulation, approved on Wednesday and proposed by the SPD-led Federal Ministry of Labor, provides for a total increase of 13.9 percent in two stages: first, from the current €12.82 to €13.90 at the turn of the year, and then to €14.60 on January 1, 2027.
According to the Federal Ministry of Labor, around six million employees will benefit from the increase. The independent Minimum Wage Commission had recommended the adjustment in June, and the government is now implementing that recommendation through a regulation.
“With the two-step increase, millions of employees will receive noticeably more for their work – and companies can distribute the rising costs responsibly over two years,” said Federal Labor Minister Bärbel Bas (SPD) after the cabinet’s decision. This, she said, was “an important step toward greater fairness and recognition for those who keep our country running day after day.” Bas emphasized that the nearly 14 percent rise was “the largest jointly agreed wage increase since the introduction of the minimum wage.”
SPD General Secretary Tim Klüssendorf described the decision as a “significant increase” that had been achieved “despite the same old resistance.” The SPD expects further increases in the future, he added. “The collectively negotiated minimum wage is always about a wage floor,” Klüssendorf told AFP. “We will not stop fighting for better wages.”
The Minimum Wage Commission consists of three representatives each from employers and trade unions, a chairperson, and two academic advisors. By law, the commission must submit a proposal for minimum wage adjustment every two years, which the federal government can then adopt through a regulation, though it is not required to do so.
The recommendation for the now-approved increase was unanimously adopted by both employer and employee representatives on the commission. Commission chair Christiane Schönefeld had warned at the time of the June announcement against “attempts at political influence,” saying such actions were “incompatible with the intended independence of the Minimum Wage Commission.”
In their coalition agreement, the SPD and CDU/CSU had stated that “a minimum wage of €15 by 2026 is achievable,” but the exact amount is to be determined by the independent commission. In recent weeks, however, there have been calls within the SPD to push through the €15 level politically if necessary — even if it meant bypassing the commission.
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