Minimum wage increases significantly in Germany

The minimum wage in Germany is set to rise by about 14% over the next 18 months, under a deal that appears to avoid a potentially divisive issue for the new government, the AP reports.

A commission made up of representatives of employers and unions recommended on Friday that the minimum wage be increased from the current level of 12.82 euros per hour to 13.90 euros at the beginning of 2026, and then to 14.60 euros a year later.

The chairwoman of the commission, Christiane Schönefeld, stated that this year they face "a particular challenge due to the uncertain economy and forecasts."

She stressed that the discussions were “particularly difficult, made even more complicated by publicly expressed expectations.”

Germany, the largest economy in Europe, has had a national minimum wage since 2015. It was introduced at the insistence of the center-left Social Democrats, who then, as now, were the junior partners in a conservative-led government.

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