Abstract
By 30 June 2025 at the latest, the Minimum Wage Commission must reach a decision on how high the statutory minimum wage should be in Germany over the next two years. The agreement of the new federal government coalition stipulates the expectation that the commission will, for the first time, base its decision on the reference value of 60% of the median wage for full-time employees in addition to changes in collectively agreed wages. The coalition parties are thus following a recommendation for an adequate minimum wage level from the European Minimum Wage Directive. The Minimum Wage Commission itself had already agreed on this reference value as an additional benchmark in its new rules of procedure at the beginning of 2025. German minimum wage policy is therefore likely to face a fundamental reorientation.