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28 July 2025

Germany announces minimum wage increase

The Minimum Wage Commission in Germany recently announced its decision to increase the minimum wage. This increase will occur in two stages, ultimately reaching a minimum wage of EUR 14.60 gross per hour by 2027. The Federal Ministry of Labor is expected to formally implement the commission's decision in the coming months. The minimum wage in Germany is a labor law requirement that in general applies across all business sectors for employed work. It was first introduced in 2015, and since then has seen several increases. As of 2025, the minimum wage stands at EUR 12.82 gross per hour, which is approximately EUR 2,222 gross per month for a full-time position of 40 hours per week.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2025-1589

 

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