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Planned Minimum Wage Increase: Taxi Associations Sound the Alarm
On June 27, 2025, the Minimum Wage Commission decided to raise the statutory minimum wage in two stages. On January 1, 2026, it will increase to 13.90 euros, and a year later – on January 1, 2027 – to 14.60 euros. The decision was unanimous and was based on a proposal by the chairperson of the commission.
Decision in an Economically Tense Environment
According to the commission’s justification, the decision was made as part of an overall assessment. The goal is to secure the minimum protection for employees, maintain fair competitive conditions, and avoid negative impacts on employment. The decision’s benchmark was the criteria of the Minimum Wage Act and the commission's rules of procedure.
The decision is made during a phase of ongoing economic stagnation. According to the commission, the German economy faces structural and cyclical problems as well as external shocks. Following a period of sharply rising consumer prices from 2021 to 2023, the price trend has recently normalized. Economic recovery is expected for 2026.
Criticism from the Taxi and Rental Car Industry
Sharp criticism of the minimum wage increase comes from the Taxi and Rental Car Association TMV. Its chief executive Patrick Meinhardt accuses the commission of having succumbed to political pressure before the SPD party conference. The planned increase to almost 15 euros is economically unsustainable and will lead to insolvencies in large parts of the economy, particularly in the taxi and rental car sector. The price pressure from platform providers like Uber is already threatening existence there. Meinhardt refers to this in connection with a "taxi death in installments."
Report and Hearing as a Basis for Decision
The commission bases its decision, among other things, on findings from its Fifth Report to the Federal Government. This was published together with the resolution. Furthermore, a hearing was conducted in accordance with § 10 Para. 3 MiLoG, the results of which are documented in a supplementary volume. Individual aspects of the decision were assessed differently within the commission. Overall, however, the panel considers the agreed steps to be justifiable in order to further develop the statutory minimum protection and to take into account developments in the labor market as well as in the economy.
Support from Politics
Federal Minister of Economics Reiche welcomed the commission's agreement. The consensual decision is a positive signal for social partnership. According to Reiche, the independence of the Minimum Wage Commission remains an important principle, as also noted in the coalition agreement.
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