The German government has announced plans to raise the minimum wage, with two scheduled increases planned within the next two years. This phased approach is expected to culminate in a minimum wage of €14.60 by 2027. The policy shift is projected to elevate Germany’s minimum wage rank in the EU, placing it just behind Luxembourg. The decision comes as part of a broader effort to improve worker living standards and reduce income inequality within the country.
According to the government-appointed commission, the gradual increase is intended to provide businesses with time to adjust and avoid potential economic disruptions. The current minimum wage in Germany is set at €12.00, and the proposed hikes are designed to bring it closer to the average of €14.60. This adjustment would make Germany’s minimum wage the second-highest in the European Union, only trailing Luxembourg.
While the move is expected to benefit workers, particularly in service and retail sectors, it has sparked some concerns among business groups about its potential impact on employment and small businesses. Nevertheless, the government remains committed to the plan, emphasizing its role in fostering a more equitable economy.