German Labor Commission Approves Minimum Wage Increase for 2027
In a unanimous decision, the German Minimum Wage Commission has announced that the minimum wage will increase to 13.90 euros in the coming year, with a further rise to 14.60 euros in 2027. The commission’s chair, Christiane Schönefeld, confirmed the decision, stating that it was made in a time of ongoing economic stagnation, with the German economy facing challenges from both structural and conjunctural issues, as well as external shocks.
Despite a strong price increase in consumer prices from 2021 to 2023, the commission expects a normalization of the trend for 2026, with the government’s announced measures expected to bring a “brightening of the economic outlook.” The commission’s decision to increase the minimum wage is the result of a comprehensive review, taking into account the minimum wage’s protective function, as well as expected developments in the labor market and the economy.
The approved increase falls short of the 15-euro minimum wage target set in the coalition agreement, which the Social Democratic Party (SPD) had campaigned on during the election. The party had promised to reach this target by 2026, but the commission’s decision does not meet this goal.