Germany has officially increased its statutory minimum wage to €13.90 (approximately ₦23,893) per hour, effective from January 1, 2026. This decision was announced by the German Federal Ministry of Labour and Social Affairs and marks a significant adjustment in the country’s wage policy, with plans for another increase to €14.60 (around ₦25,092) scheduled for January 1, 2027.

The new wage applies universally to all employees in Germany, without regard to nationality. This includes foreign workers, part-time employees, known as mini-jobbers, and seasonal workers. The minimum wage covers every hour worked within the billing period, typically a calendar month, and also includes overtime pay. Employers are mandated to ensure that wages are paid by the last banking day of the month following the work period, or earlier if that day falls on a weekend or public holiday.

However, not all workers will benefit from this wage increase. Five specific categories of workers are excluded from the minimum wage entitlement:

• Employees under 18 years of age who have not completed vocational training
• Workers who were long-term unemployed before starting their current job (exempt for the first six months)
• Interns on mandatory placements required by educational institutions
• Interns on voluntary placements accompanying vocational training or university studies
• Interns on orientation internships lasting no more than three months

These exclusions are tightly defined, ensuring that the majority of the workforce, including many foreign nationals, will still receive the full minimum wage.

Germany first implemented a general statutory minimum wage on January 1, 2015, and this latest adjustment reflects ongoing efforts to enhance worker compensation amid rising living costs. The German government is also addressing labour shortages in various sectors by promoting job opportunities for foreigners, with a recent initiative listing 31 in-demand jobs for international professionals.

As Germany continues to adapt its labour policies, the increase in minimum wage is a crucial step towards ensuring fair compensation for workers while also supporting the economy’s growth and stability.