19/01/2026 - The increase of the minimum wage on January 1, 2026, to €13.90 per hour affects every second company in Germany according to a recent DIHK survey among nearly 15,000 businesses. Not only employers with minimum wage employees are impacted, but many other businesses also face wage adjustments. "A minimum wage increase alters the entire wage structure, not just at the lower levels," says DIHK President Peter Adrian. "Numerous employers feel compelled to adjust wages above the minimum to maintain an adequate distance from the minimum wage."

According to the survey, around one in four companies is directly affected by the minimum wage increase. In the hospitality industry, every second company employs staff at minimum wage levels, and in retail every third company is. Particularly in retail (38%) higher wages result in significant increases in labor costs. The construction sector is least affected, at 17%. 

Across all industries, 40% of respondents report raising wages in higher wage groups. Nearly half of industrial companies also report such increases. Overall, half of all companies are directly or indirectly influenced by the minimum wage increase.

To offset rising personnel costs, 40% of respondents plan to raise their prices. 13% intend to reduce staff—figures rise above 20% in retail and hospitality. Only 7% plan to scale back production or services.

"Due to the weak economic situation, hardly any new jobs are currently being created," Adrian notes. Additionally, labor costs are already excessively high in Germany compared to international standards: "The minimum wage increase and rising social contributions will further drive labor costs up. This curbs investments and investors, particularly in SMEs. Policymakers must act by effectively capping social contributions and revising early retirement incentives to align the retirement age with life expectancy developments."

The full survey findings can be accessed here (only available in German).