Germany, Europe’s largest economy, set its hourly minimum wage at €12.82 in 2025, with plans to increase it in two stages to €14.60 by 2027, the government announced at the end of October 2025. The first increase will raise the wage to €13.90 at the start of 2026, following recommendations from a government-appointed commission of employers and trade union representatives. The planned rise falls short of the €15 per hour target for 2026 advocated by the coalition of Chancellor Merz’s conservatives and the SPD. However, the hikes have drawn criticism, with some warning that higher labor costs could put jobs at risk, especially after two years of economic contraction that recently pushed unemployment to 3 million in August for the first time in a decade, before dipping slightly below that level in September.