At the start of 2025, statutory minimum wages in 22 EU countries increased by an average of 6.2%, according to a study by the Economic and Social Science Institute (WSI), affiliated with the Hans Böckler Foundation. While some Eastern European countries saw sharp wage hikes, Germany experienced one of the smallest increases, rising just 3.3% to €12.82 per hour.
In contrast, Romania and Bulgaria significantly boosted their minimum wages, with Romania increasing wages by 22.7% and Bulgaria by 16.3%. These hikes are part of a broader trend across Eastern Europe, where countries are raising wages to comply with the EU Minimum Wage Directive, which aims to ensure fair pay across the bloc.
Germany’s Minimum Wage Growth Among the Lowest in the EU
Despite the increase, Germany ranks at the bottom in terms of wage growth, with its new minimum wage only slightly outpacing the 2.2% inflation rate recorded in January. The report labels this a "mini increase" and suggests that workers in Germany will barely feel the effects of the adjustment.
However, in absolute terms, Germany’s minimum wage remains one of the highest in the EU, trailing only Luxembourg (€15.25), the Netherlands (€14.06), Ireland (€13.50), and Belgium (€12.83).
Pressure from the EU Minimum Wage Directive
The EU Minimum Wage Directive, adopted in 2022, has accelerated wage growth in many member states, particularly in Eastern Europe. The directive sets a benchmark of 60% of the median wage as a guideline for an "appropriate" minimum wage.
Germany falls short of this target, with its minimum wage currently at 51.7% of the national median wage. According to the study, Germany would need to raise its minimum wage to approximately €15 per hour to meet the EU standard.
As of now, only three EU countries Portugal, Slovenia, and France have reached the 60% benchmark, according to the latest available data.
