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MONEY · GERMANY 2027
What Changes in Germany in 2027: Minimum Wage €14.60, Minijob €633 & More
Every January, Germany quietly changes the numbers that decide your salary, your taxes and your side job. Here's what's already confirmed for 1 January 2027, what's still only a plan, and what it means for you as an expat.
When I arrived in Germany, nobody told me that so many important numbers change on the same day, every year. Your minimum wage, your Minijob limit, your tax-free allowance, your Kindergeld. You only notice when your payslip looks different in February and you have no idea why.
2027 brings one of the biggest minimum wage jumps in years, a higher Minijob limit, and a long list of tax and health insurance changes that are still going through parliament. Below I've separated what is already decided from what is only planned, because a lot of articles online mix the two. We'll update this post as the drafts become law.
The Quick Overview
| What | 2026 | 2027 | Status |
|---|---|---|---|
| Minimum wage (per hour, gross) | €13.90 | €14.60 | Decided |
| Minijob monthly limit | €603 | €633 | Decided |
| Midijob range | €603.01 – €2,000 | €633.01 – €2,000 | Decided |
| Tax-free allowance (Grundfreibetrag) | €12,348 | €12,564 | Planned |
| Employee lump sum (Arbeitnehmer-Pauschbetrag) | €1,230 | €1,430 | Planned |
| Kindergeld (per child, per month) | €259 | €267 | Planned |
| Deutschlandticket (per month) | €63 | Slight increase expected | Not final |
Why "planned" matters: the tax and Kindergeld changes come from a government draft that was still being debated in the Bundestag in autumn 2026. They are very likely to pass, but the exact numbers can still change. Don't build your budget on them until they're official.
Minimum Wage: €14.60 From 1 January 2027
This one is confirmed. The statutory minimum wage (Mindestlohn) rises from €13.90 to €14.60 gross per hour. That's 70 cents more per hour, the second step of the increase the Minimum Wage Commission decided in 2025.
What it means in real money: on a full-time job of 40 hours a week, that's roughly €121 more gross per month, or about €1,456 more per year. After tax and social contributions you'll see less than that in your account, but it adds up.
Who it applies to
- Almost every employee aged 18 and over: full-time, part-time, Minijob, temporary agency work (see the job types here).
- Foreign workers and EU citizens alike. Your nationality or visa doesn't matter, the law applies to work done in Germany.
- Exceptions: under-18s without a completed vocational training, apprentices (who have their own minimum pay), certain internships, and long-term unemployed people in their first six months back at work.
Check your January payslip: if you're paid by the hour, divide your gross pay by your hours. If it's under €14.60, your employer is breaking the law. Not sure how to read the payslip? Our guide How to Read a German Payslip, Line by Line walks you through every line.
Minijob: The Limit Rises to €633
Since 2022, the Minijob limit is linked to the minimum wage: it's based on 10 hours a week at minimum wage. So when the minimum wage goes up, the Minijob limit goes up automatically.
New monthly limit: €633 (up from €603). Over a full year that's €7,596.
About 43 hours a month at the new minimum wage of €14.60.
Midijob range now starts at €633.01 and still ends at €2,000. The range where you pay reduced social contributions gets slightly narrower.
The catch for workers: if your employer doesn't raise your hourly rate but you keep the same hours, nothing changes. And if your employer does raise your rate to €14.60, check you're still under €633, or you'll slide into a Midijob with social contributions. Ask your employer how they plan to adjust your hours.
Planned for employers: a draft law would raise the flat-rate tax employers pay on Minijobs from 2% to 5%. It doesn't come out of your pay, but it makes Minijobs more expensive for employers, so some may cut hours. Full rules in our Minijob guide.
Taxes: Slightly More Net Salary (If the Draft Passes)
The government's 2027 income tax reform is still a draft, but the direction is clear: a bit less tax for low and middle incomes.
- Grundfreibetrag (the income you earn tax-free): planned to rise from €12,348 to €12,564.
- Arbeitnehmer-Pauschbetrag (the flat amount the tax office deducts for work costs, even if you claim nothing): planned to rise from €1,230 to €1,430. Good news if you never do a tax return.
- Flatter tax curve between roughly €17,800 and €70,600 of taxable income, which is where most expat employees sit.
- Handwerker deduction (tradespeople in your home): planned to drop from 20% (max €1,200) to 15% (max €900). Book that repair in 2026 if you can.
Families: Kindergeld €267 (Planned)
Kindergeld is planned to rise from €259 to €267 per child per month, with the child tax allowance (Kinderfreibetrag) going up to €10,056 for both parents together. The tax office automatically checks which is better for you, so you don't need to choose.
Reminder for expats: you can get Kindergeld as a foreigner if you live in Germany and, for non-EU citizens, have a residence permit that allows you to work. Apply at the Familienkasse as soon as you're registered.
Health Insurance: Watch This One
Public health insurance is under heavy financial pressure, and the 2027 plans show it. Nothing here is final yet, but these are the changes in the draft:
- Higher contribution ceiling (Beitragsbemessungsgrenze): planned to rise by an extra €300 per month on top of the normal yearly adjustment. If you earn well above average, you'll pay roughly €26 more per month.
- Family insurance surcharge: a 2.5% surcharge is planned for some spouses and partners who are currently insured for free through their partner (Familienversicherung). This could hit many expat families where only one partner works. Watch this closely.
- Higher co-payments for prescriptions and changes to dental subsidies are also in the draft.
Not sure if public or private insurance is better for you? Read our honest comparison: Public vs Private Health Insurance in Germany.
Other Changes Worth Knowing
Deutschlandticket: €63 a month since January 2026. From 2027 the price follows a cost index, so expect a small increase (reports mention around €66.80), but the final price wasn't fixed in autumn 2026.
New state-supported pension depot: a new subsidised private pension product (Altersvorsorgedepot) is set to start in 2027, with a state bonus of up to €540 a year. Existing Riester contracts continue.
CO₂ price on heating and fuel: a draft keeps the price corridor at €55–65 per tonne in 2027, so no big jump in heating costs from this side.
Rundfunkbeitrag: an increase to €18.64 was recommended, but no new rate had been set in autumn 2026. Details in our Rundfunkbeitrag guide.
Your January 2027 Checklist
- Check your first 2027 payslip. Hourly rate at least €14.60? Correct tax class?
- Minijobbers: confirm with your employer that your hours keep you under €633 a month.
- Families: check that the new Kindergeld amount arrives once the law is final.
- Family-insured partners: follow the health insurance news and ask your Krankenkasse what the surcharge would mean for you.
- Update your budget. Use our Cost of Living in Germany guide as a starting point.
Just arrived, or planning the move? My e-book How to Start Your Life in Germany puts all the first steps (Anmeldung, bank, insurance, job, apartment) in one place, in the right order. Get it here →
Our Take
The minimum wage and Minijob changes are good news, and they're already law. The tax relief is real but small. The part I'd watch as an expat is health insurance: if your partner is family-insured, the planned surcharge could cost you more than the tax cuts give back. We'll update this post as soon as the drafts are final.
Got a question about how 2027 affects your situation? Drop it in our Facebook group. Someone there has almost always been in the same spot.
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