Live Updates > Live Update Details
2025-10-29 19:51:06
[Germany Sets 2025 Minimum Wage and Announces Phased Increase Plan] ⑴ The German government announced that the minimum hourly wage will be €12.82 in 2025, with plans to raise it to €14.60 in two phases by 2027. ⑵ The first increase will be implemented in early 2026, at which time the minimum wage will rise to €13.90. ⑶ This adjustment plan follows the recommendations of a government-appointed committee of employers and trade union representatives. ⑷ This plan is lower than the €15 hourly wage target for 2026 advocated by the conservative-socialist coalition led by Chancellor Merz. ⑸ The increase plan has drawn criticism, with warnings that higher labor costs could jeopardize employment. ⑹ This is especially relevant after two years of economic contraction, with the number of unemployed exceeding 3 million for the first time in a decade in August, only slightly falling below that level in September.
