The statutory minimum wage in Germany is expected to increase to 14.60 euros by January 1, 2027. The increase takes place in two steps: As of January 1, 2026, it initially increased to 13.90 euros. This was announced by the minimum wage commission after hard negotiations on June 27 in Berlin. The compromise proposal of the Commission Chairman Christiane Schönefeld was unanimously decided. The minimum wage is currently 12.82 euros.
The decision follows intensive discussions between unions and employers. Christiane Schönefeld spoke of a sustainable compromise that should take into account the interests of employees and companies equally. In view of the public debate about a possible minimum wage of 15 euros, she emphasized the difficulty of negotiations, as the SPD had requested. The negotiator of the German Trade Union Confederation, Stefan Körzell, confirmed: “It was hard negotiations.”
After the decision was announced, the Trade Association of Germany (HDE) raises alarm. The association fears considerable job losses, especially in retail. HDE President Alexander von Preen emphasizes: “The determination of the minimum wage is not a social policy. Jobs have to pay off for employers in the private sector, otherwise they will be lost. The decision of the minimum wage commission is jeopardizing numerous jobs in retail.”
Preen also criticizes the political influence on the independent commission and warns of consequences: “In the end, there are only losers. The purchasing power of the employees does not increase, the competitiveness of our country suffers and people must now worry about their job.” According to calculations by the HDE, the planned increase means an increase in the minimum wage by a total of 13.9 % and since the introduction in 2015 by 71.8 %.
It is particularly problematic that the minimum wage increases significantly faster than the wages and increasingly deeper into existing tariff structures. “For a good reason, tariff autonomy is constitutionally protected,” warns von Preen. The current decision could not only lead to higher prices, but also endanger the predictability and stability for dealers.
The Federal Government will now implement the Commission’s recommendation by regulation. It remains to be seen whether the tense economic situation sparked further discussions about the amount of the minimum wage.
