Minimum wage to increase to 13.90 euros per hour on Thursday - Germany raises minimum wage to €13.90 as CO₂ pricing reform looms in 2026
Germany is set to introduce two major financial changes this week and next year. On Thursday, the statutory minimum wage will rise to €13.90 per hour. Meanwhile, a new CO2 pricing system will launch in 2026, affecting heating and fuel costs across the country.
The minimum wage increase will directly impact around six million workers. The hospitality sector, in particular, will see the biggest adjustments as wages rise. Employees in restaurants, hotels, and cafes will benefit from the higher hourly rate starting this week.
From 2026, Germany’s CO2 pricing system will shift to an auction-based model. The European Energy Exchange (EEX) in Leipzig will hold weekly auctions from July to October to set the price per ton of emissions. This change applies to heating oil, natural gas, diesel, and petrol. Initially, the CO2 levy will be capped at €65 per ton. This could push fuel prices up by several cents per litre. The new system replaces the previous fixed-rate model, with emissions certificates determining the final cost.
The minimum wage rise will provide immediate financial relief for millions of low-paid workers. The CO2 pricing overhaul, however, will take effect later, with fuel and heating costs expected to climb. Both measures mark significant shifts in Germany’s economic and environmental policies.
