The federal cabinet approves an increase in the minimum wage. The minimum wage will increase to 13.90€ from Jan 2026 and to 14.60€ from Jan 2027. More on it later.
The German drugstore and grocery chains dm, Rossmann, and Lidl plans to launch their own online pharmacy. They will sell the drugs for which you don't need a prescription. They are waiting for the final regulatory approval. This move will grow competition for traditional pharmacies.[1]
The European Central Bank (ECB) decided to maintain the interest rate unchanged. This means the mortgage and savings interest rates will also stay the same. Currently, the mortgage rates are between 3.4% to 4.1% and the savings rates are at around 2%. [2]
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Good news for home buyers
The German government has improved two KfW programs to help families buy homes. They've lowered interest rates and relaxed renovation requirements.
Home Ownership for Families – New Construction (No. 300): This program offers low-interest loans for building or buying new, climate-friendly homes. It targets families with low to middle incomes.
Home Ownership for Families – Existing Property (No. 308): This supports buying older homes with poor energy efficiency and renovating them. You must renovate the property within four and a half years.
What Changed?
Lower Interest Rates: The interest rates are cut by 0.59 percentage points for both programs. The new interest rate is 1.12% per year (down from 1.71%).
Easier Renovation Requirements: You only need to renovate to an efficiency house Standard 85 EE (previously 70 EE).
How much do you save with a KfW loan as compared to a normal mortgage?
Current mortgage rates (October 2025) are between 3.4% and 4.1% per year. The KfW loans at 1.12% are much cheaper.
Example: Suppose a family takes a €170,000 KfW loan (35 years, ten-year fixed rate). They'll save €30,500 compared to a standard mortgage. The savings were €24,000 before the interest rate cut.
Who Should Apply?
If you're planning to build or buy a family home, check these KfW programs. You can discuss them with your mortgage broker.
Here are the brokers we found the best: Interhyp*, Dr Klein*, and Baufi24.
You can also read about these programs directly on KfW website.
The German federal cabinet has officially approved a higher Mindestlohn (minimum wage). The increase will happen in two steps:
From January 2026, the minimum wage will rise to €13.90 per hour.
From January 2027, it will increase again to €14.60 per hour.
This is a total increase of about 13.9% compared to the current rate of €12.82 per hour.
The German government says the change will benefit around 6.6 million people. Full-time workers earning minimum wage will recieve roughly €190 per month (gross) more starting in January.
The increased minimum wage will cost employers around €2.2 billion in 2026, and €3.4 billion in 2027.
The wage increase will automatically apply to your payslip.
Key takeaways from the webinar: Understanding German Health Insurance
Thank you to everyone who joined the webinar. For those who couldn't make it, here are the key takeaways.
Premiums in both public and private healthcare will increase over time. The reasons are inflation and demographic shifts.
Switching to private health insurance to save money is not the right strategy. The money you save during your working life should be invested to cover the high premiums after retirement. In short, the total premium you pay in both systems during your lifetime (birth to death) is the same.
According to the law, the public system may adjust the medical coverage based on the premiums it collects. If the public system collects more, the services can improve. Similarly, if the public system collects less money, the services can be reduced. Currently, the probability of service reductions is high, as 4.7 million employees will retire between 2024 and 2028.
Public insurance is the best choice for families with a non-working spouse and children. The reason is that you can insure your spouse and children for free.
Before switching to private health insurance, you should consult an independent insurance broker (Versicherungsmakler).
NOTE: Always verify that the person you are talking to is an insurance broker.
You can do so by checking the registration number of the individual or company on VermittlerRegister. Every broker and agent must display their registration number on their website's "Impressum".
Here are the screenshots of VermittlerRegister showing an insurance broker (Versicherungsmakler) and an insurance agent (Versicherungsvertreter).
Michael Ruppel - Insurance Broker
Feather (Popsure Deutschland GmbH) - Insurance Agent
Insurance agents are not inherently evil. It's just that they act in the interest of the insurer, unlike an independent insurance broker who represents the interests of the client.
Here is an example to understand it better.
The GermanPedia team was speaking to an insurance agent of a reputable insurer about conducting a webinar. Our goal was to highlight the pros and cons of the insurance. However, the agent informed us that, in order to comply with their company's policies, they can only share what they offer. They cannot compare their services with other providers, nor highlight what they don't offer.
This means you'll never get a complete overview of an insurance product if you speak with an insurance agent.
Thus, when you need insurance advice (legal, health, liability, etc.), always consult an independent broker.
Talks between Lufthansa and the pilots’ union Vereinigung Cockpit (VC) on pay and pensions ended with no results. This increased the risk of a strike.
The union is demanding higher employer contributions to the company pension scheme. The increased contribution will add more than €200 million annually to Lufthansa's costs.
The union’s members have voted in favour of industrial action, meaning a strike could be called at any moment. If the strike goes ahead, you should expect flight cancellations and delays.
You (as a traveller) have specific rights under EU Regulation 261/2004 if your flight is cancelled or delayed.
Delays: If your flight is delayed by two hours or more (depending on distance), the airline must provide meals, drinks, and access to communication. For overnight delays, hotel accommodation and transport to it must be arranged.
Cancellations or 5-hour delays: You can choose between a full refund or an alternative flight to your destination as soon as possible.
Compensation: When the disruption is caused by Lufthansa’s own staff, passengers may qualify for compensation (from €250 to €600 depending on distance). Suppose the cause is considered “extraordinary”, for example, air traffic control strikes or severe weather. In this case, compensation may not apply.
If you have booked a flight with Lufthansa, keep an eye on Lufthansa’s official updates and check your flight status regularly.
How can you assert your right?
You have three options to claim your rights.
Do it yourself: You can claim compensation in writing.
Online services: Several online services exist, like FlightRight* and FairPlane. They offer a digital solution for claiming your rights in case of flight problems. You pay only if you get the compensation. The platform deducts 20% to 30% of the compensation amount plus VAT.
Support from a lawyer:Contact a lawyer and let them handle the situation.
How long do you have to assert a claim?
You have up to 3 years to file your claim. The claim deadline is calculated at the end of the year.
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Trump announced a global-scale agreement with China to stabilize the supply of critical minerals for industries worldwide. [1]
US chip producer GlobalFoundries plans to invest a further €1.1 billion in Dresden. Germany currently produces 30% of Europe's "wafer" semiconductors. [2]
Merz promised greater government investment in strengthening rail links between eastern Germany and neighboring countries like Poland and the Czech Republic. [3]
Merz reaffirmed that the CDU/CSU alliance will maintain a strict separation from the far-right AfD. He described the AfD as a party seeking to “destroy the CDU” and fundamentally opposed to democratic values. [4]
Germany invests 1.7 billion euros to accelerate the construction of the world's first nuclear fusion reactor. [5]
Community Shoutouts! 📣
SIM24* is offering a 20GB mobile data plan for 4.99€ per month.
C24* is offering a 75€ bonus for opening a new account. You must also transfer your existing checking account using the CHECK24 account switching service.
Perplexity is offering a 12-month Pro subscription for free. You can sign up here.
Google Gemini is offering a 12-month free Pro subscription to students. You can get it here.
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The information provided here is based on our own experience and in-depth research. The content might be inaccurate. It should not be considered financial, insurance, tax, legal, or any kind of advice.
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