The German government has approved an increase in the minimum wage: what will change in 2026

Germany has made an important decision to raise the minimum wage. This will be another step toward greater social justice and improved working conditions for millions of workers. Find out when the increase will take effect, how payments will change, and what this means for Ukrainians working in Germany

Legal assistance on employment issues for Ukrainians

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The German federal government has officially approved an increase in the minimum wage, according to tagesschau.de.

The document provides for a two-stage increase in payments to €14.60 per hour. The first stage will come into effect in January next year, and the second stage will come into effect a year later. This decision will lead to a significant increase in employers' labor costs, which will reach billions of euros.

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New minimum wage rates in Germany

According to the government's decision, the minimum hourly wage will increase to €13.90 from January 1, 2026, and to €14.60 from 2027. Overall, this represents a 13.9% increase compared to the current level.

As a reminder, the minimum wage was introduced in Germany in 2015, when it stood at €8.50. In 2022, the governing coalition of Social Democrats, Greens, and FDP decided to raise it to €12, and from 2024, it will be €12.82 per hour.

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Who will be affected by the increase?

According to the Federal Statistical Office, the new changes could affect up to 6.6 million workers, most of whom are women and workers in eastern Germany.

Those who work full-time and receive the minimum wage will be able to count on approximately €190 extra per month (before taxes) from January 2025.

At the same time, the government estimates that this will mean additional labor costs of around €2.2 billion in 2025 and up to €3.4 billion in 2027 for employers.

Labor Minister Berbel Bas called the decision “an important step towards greater fairness and recognition of the work of those who ensure the country's stable operation on a daily basis.” According to her, the minimum wage is “a success story for millions of hard-working people.”

Bas stressed that the two-stage increase will allow workers to receive significantly higher wages, while employers will be able to gradually adapt to the increase in costs.

The Social Democratic Party (SPD) had previously advocated for a more substantial increase — to €15 from 2025 — and the coalition agreement stated that this level could be achieved by 2026.

The decision now approved is based on the recommendations of the Minimum Wage Commission, which includes representatives of trade unions and employers. This commission reviews the minimum wage level every two years, taking into account the economic situation and inflation.

Legal assistance with employment issues in Germany

If you work or plan to work in Germany, it is important to know your employment rights — especially after changes in legislation. Visit Ukraine lawyers will help you understand issues related to official employment, employment contracts, tax payments, and protecting your rights as an employee. Get professional advice online and confidence in your legal employment in the EU.

Let us remind you! Germany has one of the most powerful economies in Europe, which has a positive impact on the standard of living of the population. That is why, after the start of the full-scale invasion, a large number of Ukrainians chose this country as a new place for permanent residence and work. We have already talked about the labor market, the features of employment of Ukrainians in Germany and the level of wages in 2025.

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