Minimum wage increase: Gastronomy in crisis – burdens are increasing!

Minimum wage increase: Gastronomy in crisis – burdens are increasing!

The Merz government's plans to increase the minimum wage are clear and will bring major changes. From January 1, 2026, the statutory minimum wage will be increased to 13.90 euros per hour, followed by a further increase to 14.60 euros from January 1, 2027. The current minimum wage is 12.82 euros. Federal Labor Minister Bärbel Bas sees this measure as a “success story” and a step in the right direction of justice. But what does this actually mean for the catering industry? This industry, which is already suffering from a severe labor shortage, could be particularly hard hit by the increase, as Merkur reports.

Dr. Thomas Geppert, regional manager of the Dehoga Bavaria hotel and restaurant association, emphasizes that personnel-intensive businesses that rely on direct contact with guests will clearly feel the effects of rising personnel costs. “Higher minimum wages could lead to low-skilled people being pushed out of the labor market,” warns Geppert and is concerned about further price developments. Many restaurateurs could be forced to pass on the increased costs to guests, which could lead to price increases.

Financial pressures and industry reactions

The expected additional wage costs for employers amount to around 2.2 billion euros in the first year and 3.4 billion euros in the second year. “Approximately six million employees will benefit from the minimum wage increase,” explains Dehoga Bayern. However, the industry faces a tough challenge as it is already struggling to combat the consequences of demographic change. The compelling demands on the government include a permanent reduction in VAT on food to seven percent, a reduction in income tax, reductions in bureaucracy and more flexible working hours.

DEHOGA has closely examined the effects of the minimum wage increase. With a percentage increase of 8.4 percent in 2026 and 5.0 percent in 2027, these are the highest increases ever decided. For full-time employees, this could mean a gross minimum income of at least 2,419 euros or 2,540 euros in the future. This increase will have a direct impact on existing lower pay agreements in employment and collective agreements, which could certainly lead to uncertainty, even if corresponding adjustments are already being made in many federal states.

A look into the future

The question remains open: How can the catering industry respond to the new challenges without sacrificing quality and service? The industry is hoping for political support in order to remain competitive in the future. This is particularly important since 44 percent of the minimum wage increase ultimately goes to the state. For many restaurateurs, it will be crucial to have a good hand and find creative solutions to overcome this challenge. The upcoming minimum wage increase presents not only employees, but also employers with immense tasks and forces a realignment across the entire industry.