Germany introduced its first nationwide statutory minimum wage in 2015.
The German Minimum Wage Act created a general wage floor of €8.50 per hour when it took effect on 1 January 2015. Before then, Germany relied heavily on collective bargaining and sector-specific agreements rather than one universal statutory minimum. The introduction followed a major political debate over low pay and the growth of the service sector.
A permanent Minimum Wage Commission reviews the rate and recommends adjustments, taking account of collective wage developments and economic conditions. Germany’s statutory minimum wage is distinct from collectively negotiated rates, which can be higher. A common mix-up is assuming that every German worker was covered by the same legal floor before 2015; earlier arrangements varied substantially by industry and agreement.