Minimum wage is increasing: Up to 6.6 million benefit from 2026!

Minimum wage is increasing: Up to 6.6 million benefit from 2026!

Deutschland - A fresh wind blows through Germany - and not just in the hotels and restaurants! From January 1, 2026, the statutory minimum wage will be raised to 13.90 euros per hour. The Federal Ministry of Labor and Social Affairs has decided, and it is estimated that up to 6.6 million people benefit from this increase. The relaxation of around 17 percent of employment relationships in Germany, which increases the amount of earnings of the jobs concerned by up to 400 million euros. Women and employees in East Germany in particular are the big winners of this reform, because 20 percent of the jobs affected are eliminated by women, while it is only 14 percent in men. For more information on the minimum wage adaptation [BMAS] (https://www.bmas.de/de/service/presse/pressemitteilungen/2025/anhehrung-gesetzlich-münflohl-lohn-zum-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-

The increase is part of a gradual plan that also provides for an adjustment to 14.60 euros in January 2027. While the minimum wage is currently 12.82 euros, this step shows a clear tendency to strengthen wages in the low -wage sector, which has been reduced by almost 1.5 million employment relationships since the introduction of the minimum wage in January 2015. A gratifying sign that the minimum wage has a positive impact on the labor market and helps to create a more stable income situation, contrary to the frequently expressed concerns regarding job losses. Current findings show that increasing the minimum wage on the lower income limit has a stabilizing effect and does not cause significant inflation effects. This was also found by the [Böckler Foundation] (https://www.boeckler.de/de/auf-einen-blick-17945-12-Euro-Münflohn-Studien- und-Einchaetungen-41626.htm).

regional differences in view

Not only the amount of the minimum wage is of interest, the regional differences also play a role. While around 20 percent of the employment relationships in East Germany are affected by the increase, it is only 16 percent in West Germany. The proportion in Mecklenburg-Western Pomerania is particularly high with 22 percent, while Hamburg is at the bottom of the scale at 14 percent. This difference is particularly noticeable in the hospitality industry, where impressive 56 percent of jobs are recorded by the increase. The industry of agriculture and forestry as well as fishing follows with 43 percent.

The current minimum wage is also not without controversy. While the legislator endeavors to underpin this increase by a prescription, employers' associations are concerned about the effects on tariff autonomy. Nevertheless, the minimum wage commission sees positive synergies between minimum wages and collective agreements that need to be promoted.

A look into the future

After all, a look at the next steps of the minimum wage commission can also be taken. In 2027, the number of jobs concerned could increase up to 8.3 million, which would correspond to 21 percent of the employment relationships. The estimate for the amount of earnings would increase by a further 430 million euros. Politicians, including votes from Olaf Scholz and others, have already requested further increases to 14 and 15 euros.

Conclusion: These adjustments show that there is definitely movement in the heart of the German world of work. The increase in the minimum wage not only brings more money to many households, but also ensures that people in the hospitality, one of the most affected industries, with new enthusiasm and a better financial basis can look into the future.