As of 1 January 2026, Germany’s statutory minimum wage has increased to €13.90 gross per hour. A further rise is already scheduled: from 1 January 2027, the minimum wage will increase to €14.60 per hour, representing a total increase of 13.88% over two years.
More than six million workers across Germany are expected to benefit from these adjustments. Below is a comprehensive overview for international readers of what this means in practice.
Legal Framework: Mindestlohngesetz (German Minimum Wage Act)
Germany’s statutory minimum wage is regulated by the Mindestlohngesetz (MiLoG), the German Minimum Wage Act. In principle, it applies to almost all employees working in Germany, regardless of:
- Industry
- Employment status (full-time or part-time)
- Nationality
- Type of contract
The minimum wage also applies to:
- Temporary workers
- Seasonal workers
- Fixed-term employees
- Marginal part-time workers (“mini-jobbers”)
There are only limited statutory exceptions, such as certain internships or vocational trainees (apprentices).
Who Benefits from the 2026 Increase?
More than six million employees will directly benefit from the increase to €13.90 per hour. This includes all workers who previously earned less than this amount.
Impact on Gender Pay Disparities
Women are disproportionately represented in lower-paid sectors such as retail, care services and hospitality. As a result, the minimum wage increase also contributes to reducing the gender pay gap in Germany.
Economic Significance
The increase in the statutory minimum wage is intended to:
- Strengthen purchasing power
- Stabilise domestic demand
- Reduce dependency on state benefits
- Improve income conditions in the low-wage sector
By raising the income floor, the German government aims to support economic stability and social cohesion.
Mini-Jobs in 2026: Higher Earnings Threshold
What Is a “Mini-Job”?
A “mini-job” is a form of marginal part-time employment in Germany. It is characterised by a maximum monthly earnings limit and simplified social security contributions.
Since the statutory minimum wage also applies to mini-jobbers, the earnings threshold is adjusted accordingly.
New Mini-Job Income Limits
| Year | Minimum Wage | Monthly Mini-Job Limit |
|---|---|---|
| 2025 | €12.82 (previous year example) | €556 |
| 2026 | €13.90 | €603 |
| 2027 | €14.60 | €633 |
As of 1 January 2026, the monthly earnings limit for mini-jobs has increased to €603.
From 2027, it will rise further to €633.
In the previous year, mini-jobbers were allowed to earn an average of €556 gross per month.
Dynamic Adjustment Mechanism (Since 2022)
Since 2022, the mini-job income threshold has been dynamically linked to the statutory minimum wage. The purpose is to ensure that workers can maintain an average working time of approximately 10 hours per week, even when the hourly wage increases.
This mechanism ensures that:
- Rising hourly wages
- Do not automatically reduce permitted working hours
- And provide planning security for both employers and employees
Practical Example for 2026
At €13.90 per hour:
€603 ÷ €13.90 ≈ 43.4 hours per month
This corresponds to roughly 10 hours per week.
Compliance Obligations for Employers
Employers in Germany must ensure:
- Adjustment of payroll systems as of 1 January 2026
- Review of employment contracts
- Compliance with documentation and record-keeping obligations under the Minimum Wage Act
- Accurate working time records, particularly in sectors subject to stricter controls
Violations of the statutory minimum wage rules may result in substantial administrative fines.
Outlook
With the minimum wage set at €13.90 in 2026 and €14.60 in 2027, Germany continues its upward adjustment of wage standards. The reform affects millions of workers and is a key instrument of German labour and social policy.
For international businesses operating in Germany, strict compliance with minimum wage regulations remains essential, as enforcement mechanisms are robust and penalties for non-compliance can be significant.