Minimum wage is increasing: 14.60 euros by 2027 - agreement for hard fights!

Minimum wage is increasing: 14.60 euros by 2027 - agreement for hard fights!

Schönefeld, Deutschland - Yesterday the waves of the minimum wage in Germany smoothed out. The minimum wage commission has reached an agreement, which should raise the statutory minimum wage by 2027 to a total of 14.60 euros per hour. This decision comes as a result of difficult negotiations and gives around six million people in industries such as trade, gastronomy and logistics hope for a better income. As tagesschau.de , the first step will be carried out on January 1, 2026 with an increase to 13.90 euros.

Why now this compromise? The chairwoman of the Commission, Christiane Schönefeld, said that the conversations were extremely challenging, but ultimately led to an amicable agreement. Numerous representatives were at the round table, including DGB board member Stefan Körzell, who emphasized that the agreement only came about shortly before the press conference at 9:10 a.m. The agreement is also supported by Minister of Labor and Social Affairs Bärbel BAS, who plans to put the decision into force by a legal ordinance.

political pressure and different opinions

The negotiations were not easy. Steffen Kampeter, a representative of the employers' association, described the agreement as "decent", but expressed concerns about the amount of the second increase in increasing. Kampeter vehemently criticized the political pressure that was exerted on the Commission and warned that this could endanger its independence. The SPD had originally pushed to an increase in the minimum wage to 15 euros, but this was not specified in the coalition agreement, as ZDF.de

It also becomes exciting at the upcoming Federal Party Congress of the SPD, where lively discussions about the topic of minimum wages are expected. Chancellor Friedrich Merz (CDU) stated that he will consider the debate for the minimum wage for the coalition for an end.

economic assessments and possible effects

The planned increase has also set economic experts in motion. Enzo Weber from the Institute for Labor Market and Vocational Research called the increase a "compromise with a sense of proportion". Nevertheless, Marcel Fratzscher, President of the German Institute for Economic Research, described the decision as inadequate because it remains under the level aimed at by the SPD. The minimum wage in Germany rose continuously from its introduction in 2015 with 8.50 euros - most recently to 12.82 euros, which is about 53% of the median wage.

Interesting perspectives also raise the warnings of economists, which fear that a continued increase in the minimum wage could heat inflation. Ulrich Kater, chief economist of DEKA Bank, pointed out that the number of jobs in the minimum wage area has decreased in recent years, which has been illustrated by the challenges that companies could stand in front of in the future, especially if the hoped -for economic upswing fails to.