Taxes, minimum wage, military service – what will change for German citizens in 2026
Reforms will come into force in the new year that primarily affect the incomes of many people in Germany. A summary.
Berlin (dpa) – Germany’s minimum wage will rise in 2026, pensioners will receive more money, and many people can look forward to tax relief. Here is a brief overview of what citizens can expect in the new year.
The minimum wage will increase to 13.90 euros per hour as of 1 January. Trainees will also benefit from higher pay: the monthly minimum training allowance in the first year of an apprenticeship will rise to 724 euros. At the same time as the minimum wage increases, the earnings cap for so-called mini-jobs – i.e. flexible forms of marginal employment – will go up from 556 euros to 603 euros per month.
The basic tax allowance will also increase. This is the level of income up to which no tax is paid. In 2026, it will amount to 12,348 euros. Pensions are expected to rise by around 3.7 per cent from July. Pensioners who wish to earn some additional income will benefit from tax benefits. Child benefit will increase by four euros to 259 euros per child per month from January.
Under the new Military Service Act, registration for military service will be reintroduced: from early 2026, all 18-year-old men and women will receive a questionnaire assessing their suitability and motivation for service in the armed forces.
