With the Fifth Ordinance on Adjusting the Statutory Minimum Wage (MiLoV5), the statutory minimum wage in Germany will be increased again. The adjustment is based on the recommendations of the Minimum Wage Commission and will take effect in two stages.
1. Increase of the statutory minimum wage in 2026 and 2027
The statutory minimum wage will rise as follows:
- as of 01/01/2026 to EUR 13.90 gross per hour
- as of 01/01/2027 to EUR 14.60 gross per hour
This means that the minimum wage will be increased for all places of employment in Germany, provided that the employees fall within the personal scope of the German Minimum Wage Act (MiLoG). Certain groups are excluded pursuant to section 22 MiLoG (e.g. apprentices and certain categories of interns).
2. Impact on mini-jobs: new marginal earnings threshold as of 2026
The statutory minimum wage also applies to marginally employed workers (mini-jobs). Since October 2022, the marginal earnings threshold pursuant to section 8 (1a) German Social Code Book IV (SGB IV) has been dynamically linked to the level of the minimum wage. If the minimum wage increases, the permissible earnings limit is automatically adjusted.
From 01/01/2026, the following values are expected:
- Monthly marginal earnings threshold: EUR 603
- Annual earnings threshold: EUR 7,236
This is intended to ensure that, even with rising hourly wages, a regular working time – in particular of around ten hours per week – remains possible without having to reduce working hours solely due to the higher wage level.
For employers this means: mini-job contracts should be reviewed in good time to ensure that working time and hourly wages remain within the respective marginal earnings threshold even after the minimum wage increase in 2026.
3. Statutory minimum training allowance will also increase from 2026
In parallel with the increase in the minimum wage, the statutory minimum training allowances for apprentices under section 17 of the German Vocational Training Act (BBiG) will also increase as of 01/01/2026. For example, the minimum training allowance in the first year of training will rise to EUR 724 per month.
Companies employing apprentices should therefore also review their training contracts and adjust future remuneration accordingly.
4. Practical points for employers regarding the minimum wage increase
Employers should address the planned changes at an early stage and in particular assess
- whether current remuneration complies with the future minimum wage levels,
- whether adjustments to mini-job arrangements are necessary (hourly wage, working time, earnings limits),
- what impact on payroll accounting will arise from 2026 onwards,
- whether training relationships are affected by the new minimum training allowances.
It should also be noted that not all remuneration components qualify towards the minimum wage. Only certain payments may be credited against the minimum wage; genuine expense reimbursements, for example, do not increase the minimum wage entitlement. Particular care is therefore required when designing remuneration models.
Early preparation makes implementation in practice easier and helps to avoid subsequent payments, corrections in payroll accounting and potential objections during audits.
5. Conclusion: Minimum wage 2026 – need for action for employers
The increase in the statutory minimum wage from 2026 will have a tangible impact on employers – not only in terms of hourly wages, but also with regard to mini-jobs and training allowances.
We recommend that you review your existing employment and training contracts as well as your salary and remuneration structures at an early stage and adjust them where necessary.
Would you like to check whether your remuneration models already comply with the new minimum wage requirements or whether there is a need for action?
We will be pleased to support you in the legally compliant implementation of the new rules and in structuring your employment and training relationships.
Contact us here to arrange a consultation.
