The increase in the minimum wage sparks a political storm!
The Minimum Wage Commission in Germany announced its recommendation to increase the minimum wage in two phases, reaching €13.90 at the beginning of 2026, and then €14.60 by January 2027. The decision was made unanimously based on a proposal from the chairwoman of the commission, Christiane Schönefeld. Currently, the minimum wage is €12.82, and the commission reviews this wage every two years based on negotiations between union representatives and employers, while the government officially implements the decision.
Economist Monica Schnetzer, from the Council of Economic Advisors, supported this increase, considering it compensates for the rise in inflation in recent years. She said: "This increase gives the economy time to adjust, and I do not expect a significant impact on the labor market." However, she warned that some jobs may disappear, especially in small places like food stalls, if they cannot offset costs by raising prices or improving productivity.
Political reactions were mixed. Carsten Linnemann, the Secretary General of the CDU, welcomed the consensus within the committee and considered it evidence of the success of social partnership. Likewise, Dennis Radtke, the head of the labor wing of the CDU, praised the decision, stating that it was a "long-awaited step," and called on the government to take action to alleviate the tax burden on low-income earners.
However, Michael Kretschmer, the Prime Minister of Saxony, expressed his concern, stating that decision-makers are ignoring the deteriorating economic situation, pointing to the loss of 100,000 industrial jobs within a year. He added, "Germany is no longer competitive, and labor costs must be reduced, not increased." For her part, Dagmar Schmidt, Deputy Chair of the SPD parliamentary group, described the decision as reflecting the current economic situation, but expressed disappointment that the increase was not higher. She confirmed that the party will continue to push for a minimum that can combat poverty.
In turn, Canan Kiziltepe, head of the SPD workers' association, strongly criticized the decision and called for the legal minimum to be raised to 15 euros. She said: "15 euros is the minimum for a dignified life. Those who work full-time should not need assistance or live in poverty in their old age." As for Ines Schwertner, leader of the Left Party Die Linke, she described the proposed increase as "shameful" and stated that Germany is taking a unique path in the European Union that harms workers. She added: "The proposed minimum remains a poor wage, and politics must intervene immediately to raise it to 15 euros. Otherwise, it means accepting poverty despite working."