Germany's Minimum Wage Set to Rise 5% in January 2027 to €14.60 per Hour
Germany has locked in the second stage of its largest minimum wage increase in history, with the statutory floor climbing from €13.90 to €14.60 per hour on January 1, 2027.
Germany is moving ahead with the second instalment of what the government describes as the largest minimum wage increase in the country's history. Starting January 1, 2027, the statutory minimum wage (Mindestlohn) will rise to €14.60 per hour, up from the current €13.90. This follows the first-stage increase from €12.82 to €13.90 that took effect on January 1, 2026.
The decision was made by the independent Minimum Wage Commission (Mindestlohnkomission), a body composed of employer and employee representatives, based on collective bargaining trends. The Federal Ministry of Labour and Social Affairs has now formally approved the 2027 rate. Over two years, this represents roughly a 13.7% cumulative increase—a significant boost for around 6 million workers earning at or near the minimum wage.
Who This Affects
- Low-wage workers (hospitality, retail, care, logistics): Salary floor rises by roughly €280 per month at full-time hours
- Mini-job threshold: Dynamically linked to minimum wage; expected to climb to approximately €633 per month in 2027
- Agency workers: Separate minimum wage (Arbeitnehmerüberlassung, AÜG) stands higher—€15.87 per hour from April 2027—and also continues to rise
The increase raises labour costs for employers, particularly in low-margin sectors like hospitality, retail, and social care. Some sectors may respond by reducing hours or accelerating automation. However, for low-wage workers—many of them migrants or foreign residents—the raise improves take-home pay and may ease pressures on household budgets amid inflation.
If you're working in Germany on a low wage (hospitality, cleaning, caregiving, retail), the January 2027 increase is automatic and will appear in your paycheque. Employers must comply; any agreement to accept less is void under German law. If you're hiring staff or running a small business, budget now for the higher labour cost—some employers negotiate staggered implementation with works councils. If you're considering a move to Germany for entry-level or seasonal work, note that even as the minimum wage rises, competition for these roles remains intense, particularly from EU citizens with freedom of movement.
Sources
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