The German federal government has enacted a EUR 14.60 hourly minimum wage, effective January 1, 2027, in the Fifth Minimum Wage Adjustment Ordinance (MiLoV5). The government signed it on November 5, 2025, and published it in the Federal Law Gazette (BGBl. 2025 I Nr. 268). It follows the Minimum Wage Commission’s June 27, 2025, decision, according to the Federal Ministry of Labour and Social Affairs (BMAS).
That’s your second rise in 12 months. Here’s what to update before January.
What changes to Germany’s minimum wage on January 1, 2027
Under MiLoV5, Germany’s general statutory minimum wage rises from EUR 13.90 to EUR 14.60 gross per hour on January 1, 2027, a 5.04% increase.
| Effective date | Gross hourly minimum (EUR) | Approx. USD | Increase | Source |
|---|---|---|---|---|
| Previous rate (2025) | EUR 12.82 | USD 14.39 | — | Destatis |
| January 1, 2026 | EUR 13.90 | USD 15.60 | 8.42% | MiLoV5, BMAS |
| January 1, 2027 | EUR 14.60 | USD 16.39 | 5.04% (13.88% since 2025) | MiLoV5, BMAS |
USD figures are approximate, using the European Central Bank euro reference rate as of October 2, 2026 (USD 1.1225 per EUR).
Minijob and midijob thresholds for 2027
The minijob ceiling rises to EUR 633 (about USD 711) a month from January 2027, according to the federal government’s minimum wage FAQ. Linked to the minimum wage since 2022, it equals roughly ten hours a week. Midijobs, with reduced employee social contributions, start just above it.
| Monthly threshold | 2026 (EUR) | 2027 (EUR) | 2027 approx. USD | Basis |
|---|---|---|---|---|
| Minijob ceiling (annual average) | EUR 603 | EUR 633 | USD 711 | Federal government FAQ |
| Midijob band | EUR 603.01–2,000 | EUR 633.01–2,000 (expected) | USD 710.55–2,245 | Federal government FAQ (derived from the 2027 minijob ceiling) |
How the increase affects pensions and the Grundrente
Higher gross pay means higher pension contributions and more statutory pension points for minimum wage workers. As of October 2026, no official source quantifies the effect on future pensions.
| Pension figure (as of October 2026) | Value | Approx. USD | Status | Source |
|---|---|---|---|---|
| Current pension value per point, monthly (2026 pension adjustment, up 4.24%) | EUR 42.52 | USD 47.73 | In force from July 1, 2026; July 2027 value not yet set | German Pension Insurance (DRV) |
| Provisional average earnings, 2027 | EUR 53,452 | USD 60,000 | Draft, pending cabinet and Bundesrat (Germany’s federal council) | BMAS draft Social Insurance Calculation Values Ordinance 2027 |
| Pension contribution rate, 2026 and 2027 | 18.6% | — | In force for 2026; projected for 2027, not yet set | Bundestag document 21/3080 |
Who qualifies for the Grundrente
The Grundrente supplements the statutory pension for long contribution records and modest earnings. The DRV checks eligibility automatically, so nobody applies. As of May 2026, the DRV’s Grundrente FAQ sets these rules.
| Grundrente rule (as of May 2026) | Requirement |
|---|---|
| Qualifying time | 33 years of Grundrente periods, scaled between 33 and 35 years; full supplement from 35 years |
| Earnings test | Lifetime average at most 80% of average earnings; only periods at or above 30% count |
| Periods that don’t count | Unemployment benefit periods, voluntary contributions, and minijobs without the worker’s own pension contributions |
What it means for employees in Germany
From January 1, 2027, minimum wage employees earn EUR 0.70 (about USD 0.79) more per hour. On a 40-hour week, that’s roughly EUR 121 (about USD 136) more, or about EUR 2,530 (about USD 2,840) gross a month. The monthly figure is illustrative, since Germany only sets an hourly minimum. Minijobbers can still work about ten hours a week at the new rate.
What it means for employers
Under MiLoV5, you must pay at least EUR 14.60 (about USD 16.39) per hour worked in Germany from January 1, 2027. Before your first January pay run:
- Update hourly rates in your payroll system
- Divide fixed salaries by hours worked to confirm each hour meets the new minimum
- Recheck minijob and midijob classifications against the new thresholds
- Keep working-time records where required — for minijobs and specified sectors — so you can prove you pay the hourly minimum
- Rebudget 2027 labor costs, including higher employer pension contributions
Planning a German hire? Model the full cost with our employee cost calculator, and see our Germany employment guide.
Staying compliant with Germany’s wage changes with Multiplier
Multiplier Global Payroll runs payroll for your German entity alongside the other 160+ countries we cover. Real-time previews let you check every change before your January 2027 run. Our in-house legal and tax team tracks changes like MiLoV5, and more than 2,700 companies already use Multiplier.
No German entity yet? With our Employer of Record (EOR) service, we’re the legal employer and handle payroll, tax, social security, and benefits. New to the model? Here’s how an EOR works.
Book a demo to see how Multiplier handles Germany’s 2027 changes
FAQs
What is the minimum wage in Germany in 2027?
Germany's minimum wage is EUR 14.60 (about USD 16.39) gross per hour from January 1, 2027. The Fifth Minimum Wage Adjustment Ordinance (MiLoV5) sets it, up 5.04% from the 2026 rate of EUR 13.90 (about USD 15.60). Binding sector minimum wages, such as in construction and building cleaning, can set higher rates.
Is Germany's EUR 14.60 minimum wage confirmed?
Yes, it's law. MiLoV5 sets both the 2026 and 2027 rates. Signed on November 5, 2025, and published in the Federal Law Gazette (BGBl. 2025 I Nr. 268), it took effect on January 1, 2026. The BMAS says it follows the Minimum Wage Commission's June 27, 2025, decision.
How many jobs will Germany's 2027 minimum wage increase affect?
Up to 8.3 million jobs, or about 21% of all jobs, according to Destatis press release No. 256/2025. It's an upper bound from April 2024 pay data. It counts jobs, not people, and excludes apprentices, interns, and minors. Destatis put the 2026 step at up to 6.6 million jobs.
Does the minimum wage increase affect pensions in Germany?
Yes, indirectly. Higher gross pay means higher contributions and more statutory pension points. As of October 2026, one point is worth EUR 42.52 (about USD 47.73) a month under the 2026 pension adjustment, effective July 1, 2026. No official source quantifies the effect on future pensions.
