Germany to increase minimum wage and introduce gas levy

Germany has announced a two-step increase to its statutory minimum wage, set to take effect on January 1, 2027. The hourly rate will rise from 13.90 euros to 14.60 euros, a total increase of approximately 13.88 percent. This adjustment is expected to benefit over six million employees. Additionally, the monthly earnings limit for ‘mini-jobs’ will increase from 603 euros to 633 euros.

Separately, the German Federal Ministry for Economic Affairs has drafted a new gas levy (Gasumlage) to fund a national strategic gas reserve. The levy, proposed to begin in October 2027, aims to ensure energy security against potential supply disruptions such as sabotage or infrastructure failure. The levy is estimated to cost between 0.029 and 0.036 euro cents per kilowatt-hour. While the impact on average households is expected to be relatively low, large industrial consumers will face significantly higher costs.