Minimum Wage in Germany: Rates, Trends & Compliance

If you’re hiring in Germany, it’s important to adhere to the latest laws surrounding minimum wage to remain compliant as an employer. Learn what the updated minimum wage is, how it applies to different workers, and factors influencing minimum wage in Germany.

Iconic landmark in Germany

Capital City

Berlin

Currency

Euro

(

)

Timezone

CET

(

GMT +1

)

Payroll

Monthly

Employment Cost

20.80%

What Is the Minimum Wage in Germany?

As of January 1, 2026, Germany’s statutory minimum wage is €13.90 per hour. This increase from €12.82 per hour in 2025 reflects the government’s continued efforts to ensure fair compensation and keep wages aligned with economic conditions.

While the statutory minimum wage applies nationwide, some industries negotiate higher minimum rates through collective agreements. For example, sectors such as temporary employment have historically set wages above the statutory floor to reflect labor demand and working conditions.

Looking ahead, the German government has announced a further planned increase to €14.60 per hour as of January 1, 2027. Employers operating in Germany should stay informed about these changes to ensure ongoing compliance and remain competitive in the labor market.

How Does Minimum Wage Apply to Different Workers in Germany?

The statutory minimum wage in Germany applies to all employees over 18 years of age. However, certain groups are exempt, including trainees under the Vocational Training Act, volunteers, individuals in voluntary service, participants in employment promotion programs, home workers under the Home Work Act, self-employed persons, youths under 18 without completed vocational training, and long-term unemployed persons during the first six months of re-entering the labor market.

Full-Time Employee Wages

Full-time employees in Germany are entitled to the statutory minimum wage of €13.90 per hour as of January 1, 2026. In some industries, collective bargaining agreements establish higher minimum wages. For example, sectors such as temporary employment have historically set rates above the statutory minimum to reflect labor demand and sector-specific conditions.

Part-Time Employee Wages

Part-time employees are entitled to the same statutory minimum wage of €13.90 per hour as full-time employees. German labor law guarantees equal pay for equal work, ensuring that compensation is not reduced solely due to fewer working hours.

Interns and Trainees

Interns and trainees may be exempt from the statutory minimum wage under specific conditions. This typically applies to trainees covered by the Vocational Training Act and to mandatory internships or internships completed prior to vocational training. Whether the minimum wage applies depends on the type, duration, and purpose of the placement and must be assessed on a case-by-case basis.

Expats

Foreign workers employed in Germany – including expatriates – are entitled to the statutory minimum wage of €13.90 per hour, regardless of nationality or whether the employer is domestic or foreign. This ensures equal minimum pay standards for all workers employed in Germany.

Factors Influencing Minimum Wage in Germany

Germany’s minimum wage isn’t set in isolation. While the statutory minimum wage establishes a nationwide baseline, actual pay levels are influenced by industry-specific agreements, economic conditions, and government policy decisions.

Industry-Specific Variations

Alongside the general statutory minimum wage of €13.90 per hour in 2026, some industries negotiate higher minimum rates through collective bargaining agreements. These sector-specific wages reflect factors such as working conditions, skill requirements, and labor demand.

For example, industries like temporary employment have historically set minimum wages above the statutory level, particularly during periods of labor shortages or increased demand.

Economic Conditions

Economic factors such as inflation and employment rates play a significant role in determining the minimum wage. The Minimum Wage Commission evaluates these conditions to recommend adjustments that ensure fair compensation without adversely affecting employment levels.

Government Policies and Legislation

The German government, through the Minimum Wage Act, establishes the statutory minimum wage and periodically reviews it based on recommendations from the Minimum Wage Commission. This process ensures that wage adjustments align with current economic conditions and labor market dynamics.

Minimum Wage History and Trends in Germany

Germany introduced its first nationwide statutory minimum wage of €8.50 per hour on January 1, 2015. Since then, the minimum wage has been increased several times to reflect economic conditions and policy priorities.

As of January 1, 2026, the statutory minimum wage stands at €13.90 per hour, up from €12.82 in 2025. Looking ahead, a further increase to €14.60 per hour is planned for January 1, 2027, signaling the government’s continued focus on improving wage levels and protecting workers’ purchasing power.

How To Stay Compliant When Hiring in Germany With Playroll

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  • Meet minimum wage requirements: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for statutory benefits, minimum wage, and more.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Milani Notshe

Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.

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FAQs About Minimum Wage in Germany

What is the current hourly or daily minimum wage in Germany?

As of January 1, 2026, the minimum wage in Germany is €13.90 per hour, reflecting an increase of €1.08 from the €12.82 hourly rate in 2025.

Are there exceptions to the minimum wage law in Germany?

Yes, certain groups are exempt, including trainees under the Vocational Training Act, volunteers, individuals in voluntary service, participants in employment promotion programs, home workers under the Home Work Act, self-employed persons, youths under 18 without completed vocational training, and long-term unemployed persons during the first six months of re-entering the labor market.

How often is the minimum wage reviewed in Germany?

The Minimum Wage Commission reviews the minimum wage every two years and makes recommendations for adjustments based on economic conditions and collective wage agreements.

What is the minimum wage vs. living wage in Germany?

The statutory minimum wage in Germany is €13.90 per hour as of January 1, 2026. The living wage, however, varies depending on factors such as location, household size, and individual circumstances. In many urban areas – particularly cities like Munich and Frankfurt – the cost of living is significantly higher, and the living wage may exceed the statutory minimum wage.