Germany’s Minimum Wage Commission has recommended gradual increases in the national minimum wage: €13.90 in 2026, rising to €14.60 in 2027—making it the second-highest wage floor in the EU, according to Reuters.
Economists caution that higher labour costs may prompt companies to cut entry-level hiring or compress working hours to manage expenses. Small and mid-size firms, in particular, are expected to adjust staffing levels or introduce automation to offset the rise.
The proposal reflects Germany’s commitment to enhancing living standards and narrowing wage disparities. However, associations across the EU warn that unless paired with productivity gains, such wage hikes could strain businesses and slow job creation.
Germany’s move is likely to influence discussions on wage policy in countries like India, where minimum wage debates continue amid evolving labour market trends.
Source – https://www.bwpeople.in/article/germany-to-raise-minimum-wage-to-eur1460-by-2027-561611