The German government has announced that it will increase the minimum wage by almost 2.3% in 2022.

Key Points:

  • Germany’s hourly national minimum wage will increase on by 22 cents from €9.60 to €9.82.
  • The new minimum wage will take effect Jan. 1, 2022.
  • The minimum wage is set to increase again to €10.45 on July 1, 2022.

Additional Information: Since Jan. 1, 2020, the gross minimum wage has been €9.35. The Minimum Wage Commission recommended increasing the minimum wage in several stages to €10.45 by July 2022.

BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2022 budgets.

This alert has been provided by the BAL Global Practice group. For additional information, please contact

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