Germany Raises the Minimum Wage: What Will Change in 2027

From January 2027, Germany’s minimum hourly wage will increase to €14.60. Find out how this will affect salaries, contributions and future pensions

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From 1 January 2027, Germany will once again raise pay for its lowest earners. The statutory minimum hourly wage goes up from €13.90 to €14.60 before tax and social contributions. The decision is final: the federal government enacted it by ordinance, following a proposal from the Minimum Wage Commission. The change reaches beyond payslips. It will shift the Minijob earnings limit and affect future pensions, so let's go through it step by step.

Read also: what is the average cost of living in Germany in 2026?

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How will the minimum wage in Germany change in 2027?

The increase comes in two steps. At the start of 2025 the rate was €12.82; on 1 January 2026 it rose to €13.90, and a year later it will reach €14.60. The difference between 2026 and 2027 is 70 cents an hour, or roughly five percent. The Commission took 60% of the median wage of full-time employees as its benchmark, which is also the reference point recommended by the EU Minimum Wage Directive.

The €15 mentioned in the coalition agreement is not on the table for now. No date has been set in law for reaching that mark, and the Commission will meet again in 2027 to review the rate.

Tax rules for foreigners in Germany: details here.

 
Minimum wage for full-time work in Germany in 2027

To convert an hourly wage into a monthly one, Germans use an averaged figure: 173.33 working hours per month. It smooths out the fact that months have different numbers of days. Multiply by 14.60 and you get €2,530.62. Over a year, that comes to about €30,370.

All of these are gross figures, that is, before taxes and contributions. What a worker actually takes home depends on tax class, whether they have children, the federal state and the health insurance fund. More on that below.

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Minijob: the new earnings limit and working hours

For Minijob side jobs, the earnings ceiling is tied automatically to the minimum wage. The formula is set out in § 8 SGB IV (Book IV of the Social Code): the minimum wage is multiplied by 130, divided by three and rounded up to the next full euro. In 2026 the limit is €603; from January 2027 it will be €633 a month, or €7,596 a year.

At exactly the minimum wage, that works out to about 43.36 hours a month, which in practice is a little more than one full working week. The upper limit of the so-called Midijob (transition zone) stays at €2,000, while the lower limit moves up to €633.01.

One thing to know about Minijob contributions: the employer pays flat-rate pension and health contributions, while the employee by default tops up the pension fund by 3.6%. You can opt out in writing.

Germany is lowering the salary threshold for the Blue Card in shortage occupations; details here.

 
Who gets a raise in Germany, and who doesn't?

Those whose pay currently equals the minimum wage or sits slightly below the new one win automatically. If you already earn more than €14.60, you won't get extra money: the new limit works as a floor, not as a raise for everyone. Sector-specific minimums set by collective agreements can be higher than the national one, but never lower.

The law applies to all employees in Germany, regardless of citizenship. There are exceptions: minors without vocational qualifications, apprentices in vocational training, certain types of internships, and the long-term unemployed during the first six months of a new job.

 
Taxes and contributions: what's left of €2,530

Four social security contributions are deducted from gross pay, and each is split between employee and employer. In 2026 the employee's share is: 9.3% to the pension fund, 1.3% for unemployment insurance, 7.3% plus half of the health fund's additional contribution (1.45% on average) for health insurance, and 1.8% for long-term care insurance. Childless employees over 23 pay 2.4% for care. In total, roughly a fifth of the salary goes on social contributions. Income tax is paid separately; it depends on the tax class and rises with earnings.

What about rates in 2027? According to official government projections, the pension contribution rate remains at 18.6% for now. The average additional contribution of health funds for next year is due to be announced in autumn.

The best cities in Germany for expats in 2026: see the link.

 
Pension points: how much does a year at minimum wage earn you?

German pensions are calculated in points. A worker earns one full point for a year in which they earn the national average annual wage. According to preliminary 2026 data, that is €51,944. Since 1 July 2026, one point is worth €42.52 of monthly pension, after an increase of 4.24% (it was €40.79 before).

A worker on the minimum wage earns roughly 0.58 points a year. That means each year of such service adds about €24.83 a month to the future pension, again before tax and contributions. Here is how it adds up:

- 5 years of service: about €124 a month;

- 10 years: about €248;

- 20 years: about €497;

- 35 years: about €869;

- 45 years: about €1,117.

For comparison, someone who earned exactly the average wage for 45 years receives €1,913.40 today. So a minimum wage gets you slightly under sixty percent of that amount in the long run.

Treat these figures as a guide. The value of a point is reviewed every year, and by the time you retire it will most likely be higher. But rising prices can eat up that gain, and purchasing power won't necessarily grow along with the sum.

Maximum payouts and eligibility rules for pensions in Germany: details here.

 
Grundrente: a top-up for people who worked long years on low pay

Germany has a pension supplement called Grundrente for people on low incomes. No application is needed: once you retire, Deutsche Rentenversicherung checks by itself whether you meet the conditions.

You need at least 33 years of insurance record that counts towards the scheme. This includes periods of work with compulsory contributions, child-rearing, caring for relatives, and receiving sickness benefit. The full supplement is paid for 35 years or more, and between 33 and 35 it rises gradually. The second criterion: over your working life, your average earnings must be between 30% and 80% of the national average. By our calculations, a worker on the minimum wage falls into this range, since their figure is around 58%.

Next, the pension service looks at the pensioner's total income. If it exceeds the set thresholds, the supplement is reduced, and at much higher amounts it can disappear entirely. The thresholds for single people and married couples are reviewed every year.

 
What to keep in mind when planning to work in Germany?

The new rate applies to everyone employed in Germany, so before signing a contract, compare the offered hourly pay with the minimum in force on your start date. Net income will differ depending on the federal state and health insurance fund, so for an exact figure it is best to use an official calculator. And don't forget the pension angle: even a few years of declared employment build entitlement to benefits.

If you're considering working in Germany, the minimum rate and contributions are only part of the picture. First you'll need a visa and a work permit, and a mistake in your documents costs both time and money.

The Visit World "Work Guide" walks you through the whole path, from filling in the visa application to registering with local authorities. The guide has separate instructions for the work visa (short- or long-stay) and for the work permit. It also includes complete document lists, the visa fee, estimated processing time and tips for living in the country. It suits citizens of any country: just enter your citizenship and destination. Everything arrives by email as a PDF within minutes.

Find out what you need for your visa in the Visit World "Work Guide".

Remember! In Germany, people of retirement age and adults with permanent full incapacity to work can apply for Grundsicherung if their own income is not enough to live on. The benefit covers a standard payment, reasonable housing and heating costs, insurance contributions and statutory supplements. We have already covered the amounts for 2026, the financial limits and the application procedure.

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