An index tranche of 2.5% will take place before the summer, the two ministers confirmed, while the minimum wage will be increased by 3.8%. This is the government’s reaction to price hikes, particularly in the energy sector.
This wage adjustment means that minimum wage will go up by 170 euros on 1 January 2027. To ease the burden on businesses, the state will compensate 1.3% of the announced 3.8% adjustment. The exact nature of this compensation will be discussed with employer representatives.
The ministers announced the news in a spontaneous press briefing on Friday afternoon. They were unable to provide exact figures for the cost of these changes, but estimated the state will be looking at 30 to 50 million euros a year.
