Germany will increase its hourly minimum wage in two stages, reaching €14.60 per hour by 2027.
The first increase will take effect at the start of 2026, raising the minimum wage to €13.90 per hour from the current €12.82.
The move follows recommendations from a government commission that includes both employers and trade union representatives.
Up to 6.6 million workers could benefit from the wage hike, according to the Federal Statistics Office.
However, some critics warn that higher labor costs could put jobs at risk. They argue that companies may struggle to hire and retain staff as expenses rise.
Germany’s labor market is already under pressure after two years of economic contraction.
Unemployment reached 3 million in August for the first time in a decade, though it dipped slightly in September.
The new minimum wage falls short of the €15 per hour target for 2026 that Chancellor Friedrich Merz’s conservatives and the Social Democrats (SPD) coalition partners had aimed for in their agreement.