The German government has confirmed an increase to the statutory minimum wage from 1 January 2026. The new rate of €13.90 per hour represents a significant adjustment to the minimum remuneration floor and follows recommendations from the independent Minimum Wage Commission. Employers with operations in Germany should prepare to update payroll systems and HR policies to ensure compliance with the updated requirement. Understanding the new statutory minimum wage is crucial for accurate payroll administration and adherence to employment law.
From 1 January 2026, the German statutory minimum wage under the Minimum Wage Act will increase to €13.90 per hour, up from €12.82 in 2025. This change affects the majority of employees subject to the Act, including full-time, part-time and mini-job workers earning at or near the minimum wage. Employers should note that a further scheduled increase to €14.60 per hour is planned for 1 January 2027, following the phased approach recommended by the Minimum Wage Commission.
Employers should take proactive steps to implement the minimum wage update and ensure compliance with statutory requirements:
Timely action will help organisations maintain accurate wage payments and avoid potential breaches of employment law.
For further detailed guidance on payroll, employment law, and compliance in Germany, visit our Germany Global Insights on the activpayroll website.
If you would like to understand how this minimum wage change may impact your payroll, mobility, or HR policies, please get in touch. Complete our Contact Us form, and a member of our expert team will be happy to assist with your queries.