BERLIN (Reuters) -The hourly minimum wage for workers in Germany, Europe’s biggest economy, will rise in two stages to 14.60 euros ($17) by 2027 from 12.82 euros, the cabinet agreed on Wednesday.

The change, which will initially include a rise to 13.90 euros at the beginning of 2026, is in line with proposals put forward in June by a government-appointed commission comprising employers and trade union representatives.

Workers in up to 6.6 million jobs could benefit from the increase, the Federal Statistics Office estimated.

However, critics say raising the minimum wage could put jobs at risk as higher labour costs make it harder for companies to hire and keep staff.

Germany’s labour market is feeling the effects of two years of economic contraction, with the number of unemployed people

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