Overview
- Based on April 2025 data, Destatis estimates roughly 12% of jobs were below €13.90, implying up to €275 million in added earnings for affected roles, with figures flagged as upper bounds.
- Women benefit more often than men and impacts are largest in hospitality, agriculture/forestry/fishing, and arts/entertainment, with higher shares in eastern states and the peak in Saxony.
- The NGG union urges workers to scrutinize payslips and warns of payroll tricks to evade the new floor, citing limited enforcement capacity at the customs unit FKS.
- Business surveys report planned price increases at many firms and some contemplation of staff cuts, with DIHK and Ifo finding elevated intentions in trade and hospitality.
- Parliament has made the VAT on restaurant food permanently 7% from 19%, and a further statutory rise to €14.60 on 1 January 2027 is projected to affect up to 7 million jobs.