General
What is the statutory minimum wage?
The statutory minimum wage is a central item of German labor market policy. It is the job of representing the minimum wage for certain groups of employees, which must not be undercut. With the enactment of the Federal Act on the Promotion of the Development of the German-speaking Region 5. Minimum Wage Ordinance passed by the Federal Cabinet, the minimum wage will rise to €13.90 on January 1, 2026, with a further increase to €14.60 planned for 2027.
The Minimum Wage Commission is an independent body made up of representatives from trade unions, employers, and academia. On June 27, 2025, a recommendation was made to raise the actual minimum wage of €12.82 in two steps:
- from January 1, 2026, to €13.90 per hour
- from January 1, 2027, to $14.60 per hour
Historical development of the minimum wage
Since the introduction of the minimum wage on January 1, 2015, at €8.50 per hour, it has been customized several times over the past few years. The Minimum Wage Commission usually decides on the minimum wage every two years, basing its decision on general wage developments. Only in exceptional cases, such as the increase in 2022 by the traffic light coalition, does the legislature intervene directly.
Application of the minimum wage
Which employees are excluded from the minimum wage?
The statutory minimum wage applies in i. d. R. for all employees. The following are exempt from these regulations:
- Trainees
- Mandatory interns in school or university education
- Volunteer interns, if the internship lasts up to three months and serves as orientation or preparation for a course of study.
- Industries with their own, often higher collectively agreed minimum wages (e.g., nursing, building cleaning, electrical trades)
- Long-term unemployed in the first six months after starting work
Impact on marginal employment and the transition area
The minimum wage increase also raises the dynamic marginal earnings threshold for mini-jobs and the lower limit for the transitional area. Since 2023, the remuneration limit for marginal employment is no longer enshrined in law as a fixed amount, but is dynamically customized to the minimum wage. This prevents mini-jobbers from having to reduce their working hours every time there is an increase in order to remain exempt from insurance. Specifically, this means:
- The monthly earnings limit for mini-jobs will increase from €556.00 to €603.00 in 2026.
- The transition range will start at €603.01 in 2026 and remain unchanged at €2,000.00.
Calculation of the earnings limit for mini-jobs
The calculation is based on the statutory minimum wage and a weekly working time of 10 hours.
Minimum wage * 10 work hours per week * 13 weeks / 3 months = earnings limit
For 2026, this means:
$13.90 * 10 work hours per week * 13 weeks / 3 months = $602.33
Rounded up, the earnings limit for mini-jobs for a minimum wage of €13.90 will be €603.00 per month from 2026.