Germany is set to see a significant increase in its statutory minimum wage starting January 1, 2026, with an estimated 6.6 million employees expected to benefit. The Federal Statistical Office (Destatis) has released data indicating that the wage hike to €13.90 per hour will impact approximately 17% of all jobs in Germany, marking a notable step in supporting low-wage workers across the country.
Based on the latest earnings survey from April 2024, jobs currently paying below the new minimum wage will receive a boost in earnings estimated at up to 6%, translating to roughly €400 million in additional wages annually. The increase reflects the government's ongoing commitment to improving income fairness, particularly for vulnerable worker groups.
It’s important to note that the estimate assumes all affected employees earn at least the current minimum wage of €12.82 and will receive at least €13.90 after the increase. However, further wage rises after April 2024 are not accounted for, meaning these figures represent the upper limit of the possible impact.
The wage hike disproportionately favors women and employees in eastern Germany. Approximately 20% of women’s jobs are currently below the planned €13.90 minimum wage, compared to 14% of men’s jobs. This reflects ongoing gender pay disparities, with the increase helping to narrow the gap.
Regionally, eastern Germany has a higher share of affected jobs (around 20%) than western Germany (16%). Among federal states, Mecklenburg-Western Pomerania faces the highest impact, with 22% of jobs affected, while Hamburg sees the lowest at 14%.
Certain industries will feel the minimum wage increase more acutely. The hospitality sector is the most affected, with 56% of jobs currently below the new minimum wage threshold. Agriculture, forestry, and fishing also have a large share, with 43% of jobs impacted.
These sectors typically employ a high number of part-time, seasonal, or lower-paid workers, making the wage increase especially significant in improving living standards for those employees.
The minimum wage will rise again on January 1, 2027, reaching €14.60 per hour. Estimates suggest up to 8.3 million jobs (21% of all employment relationships) will be affected by this second hike. This will lead to a further 4% increase in earnings, approximately €430 million more compared to the first increase.
Like the 2026 estimate, this projection assumes no other wage increases after April 2024 and should be considered an upper limit.
Raising the minimum wage aims to reduce income inequality and enhance purchasing power for millions of workers. It particularly benefits women and workers in regions with lower average wages, such as eastern Germany. Higher wages can boost domestic consumption and contribute to economic growth, while also improving employee motivation and reducing turnover rates.
While the wage increases are generally welcomed, some businesses, especially small and medium enterprises (SMEs) in affected sectors, may face higher labor costs. Balancing wage growth with economic competitiveness remains a key policy challenge. Additionally, the impact of inflation, labor market dynamics, and broader economic conditions will influence how effectively these increases improve living standards.
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