German Tourism Industry Under Pressure: Minimum Wage Rises Sharply

The minimum wage is rising, and with it, the concerns of many businesses. For employees in the hospitality industry, the decision of the minimum wage commission means a noticeable income increase. From January 2026, the statutory minimum wage in Germany will rise to 13.90 euros per hour, and a year later it will be 14.60 euros. For full-time employees, this results in about 3,700 euros more per year. The Food, Beverages and Catering Union (NGG) explicitly welcomes the decision. Its chairman, Guido Zeitler, speaks of a necessary step, especially for the approximately 1.1 million employees in the hospitality industry, more than half of whom work in the low-wage sector.

Economic Burden for Businesses

But while many employees are pleased, hoteliers and innkeepers look at the development with concern. In regions with strong tourism, numerous businesses complain about already significantly increased wage costs since the COVID-19 pandemic. Theresa Albrecht, a hotel manager in Bavaria, emphasizes that many businesses can no longer offset the higher costs through room prices. Another increase could be existentially threatening for some establishments.

Rising Wages Across the Entire Industry

Criticism also comes from the German Hotel and Restaurant Association (DEHOGA). President Guido Zöllick warns that the increase in the minimum wage could also put pressure on skilled workers' salaries. According to DEHOGA, eight regional collective agreements could lose their validity as early as 2026. The association speaks of an intervention in collective bargaining autonomy.

Unequal Tax Environment

An additional point of criticism concerns the tax burden: While in Austria a reduced VAT rate of ten percent applies to food, in Germany it is 19 percent. The industry is therefore calling for tax relief to remain competitive.

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