The statutory minimum wage in Germany will rise to €12 per hour ($12.89) in October, after a vote in the Bundestag parliament on Friday.
The minimum wage was passed with the votes of the centre-left coalition - the Social Democrats (SPD), the Greens and the Free Democrats - as well as the hard-left Die Linke party.
The conservative opposition and the far-right Alternative for Germany (AfD) abstained.
Currently, the minimum wage is €9.82. On July 1, it will rise to €10.45.
At the same time, the maximum remuneration for so-called "mini-jobs" will rise from €450 to €520 per month in October.
Labour Minister Hubertus Heil said women and people in eastern Germany will particularly benefit from the increase in the minimum wage.
German Chancellor Olaf Scholz, from the SPD, had made the wage increase a key promise of his election campaign last year.
Many speakers during the debate used the current high inflation as part of the reason why a minimum wage was vital.
Opposition parties argued that the minimum wage would not protect people against further prices increases, and that there were other ways to and increase purchasing power and keep Germany's economy competitive.
