What an announcement means legally
Under § 311(1) BGB (German Civil Code), changing the content of a contract requires an agreement between both parties. A price increase therefore needs a basis:
- Price adjustment clause: within the limits of the Preisklauselgesetz (German Price Clause Act) and, in general terms and conditions, of § 307 BGB. What a fair clause looks like
- Unilateral right to set the price: if the provider is entitled to set the price, in case of doubt it must exercise equitable discretion. Otherwise, the price it sets is not binding on you (§ 315 BGB).
- Amendment by mutual agreement: you agree, in full or in part.
- Termination with a new offer: the provider terminates the contract with effect from the next permissible date and offers new prices.
- Interference with the basis of the transaction: only in the event of a serious change, where holding on to the contract would be unreasonable, taking into account the contractual allocation of risk (§ 313 BGB). For long-term contracts, termination takes the place of withdrawal.
For contracts between businesses, the BGB does not provide a general special right of termination in the event of price increases. Such a right may arise from the contract.
This page describes the legal position in general terms. It is not a substitute for legal advice in individual cases.
Check in five steps
- Read the contract. Term, notice periods, date of the costing. Individually agreed terms take precedence over general terms and conditions (§ 305b BGB).
- Identify the clause. Is there one, and what type is it? Which reference date, which threshold, what deadline and form for the notice, what evidence? Does it work in both directions, is there a cap?
- Clarify the cost share. Which share of the price is affected: wages, materials or energy? A cost element clause only applies to the extent that these costs determine the price.
- Recalculate. The agreed index for the agreed period, using the clause’s formula. If there is no formula, a rule of thumb helps: share of the cost driver times its change. Go to the price adjustment clause calculator
- Check plausibility. Using public figures such as those in the table below. If the announced increase is well above them, ask what accounts for the rest.
Comparative figures, as of October 2026
| Cost driver | Change |
|---|---|
| Statutory minimum wage, from 1 January 2027 | +5.0% |
| Security services, Berlin and Brandenburg, pay group 1, 2027 | +3.6% |
| Electrical trade, Berlin-Brandenburg, from January 2027 | +3.06% |
| Plumbing, heating and air conditioning trade (SHK), North Rhine-Westphalia, from March 2027 | +2.55% |
| Textile services, since September 2026 | +2.5% |
| Commercial cleaning, wage group 1, 2027 | open: between +1.8% from May and +13.3% |
| Producer prices, September 2026 | +6.7%, excluding energy +3.2% |
You then have five options: reject the increase if there is no basis for it or the calculation does not hold up; accept it; accept it in part; make a counter-proposal, for example with a longer term, more volume or a reduced scope of services; or obtain other offers in time for the next termination date.
Text blocks for your reply
Reply in writing before the increase is due to take effect. Replace the parts in square brackets with your own details.
Dear Sir or Madam,
We have received your letter of [date] announcing an increase of [x]% with effect from [date]. This acknowledgement does not constitute our agreement to the increase.
Please state the contractual basis for the increase and send us the following by [date]:
- the calculation of the increase,
- the index used, with its source and the period applied,
- the share of the affected costs in the price, supported by your cost calculation,
- for labour costs, the collective agreement and the pay group.
According to our calculation, [cost driver], which accounts for [y]% of the price, justifies an increase of no more than [z]%.
Until the matter has been clarified, the agreed prices continue to apply.
Or: Until the matter has been clarified, we will pay invoices at the new price only under reservation of our rights.
We would be happy to discuss a solution with you, for example regarding the contract term, volume or scope of services.
Where applicable: Our contract can be terminated with effect from [date]. In the meantime, we will also be obtaining other offers.
Yours faithfully,
[name, position]
Sample provided without guarantee; not legal advice. Have the wording checked for your specific case, especially reservations of rights and terminations.
Frequently asked questions about price increases
Do I have to agree to a price increase?
No. If your contract contains no price adjustment clause and no unilateral right to set the price, an increase only takes effect with your consent (§ 311(1) BGB). If there is such a clause, the provider does not need your consent but must comply with the clause. Without a clause, the provider can terminate the contract with effect from the next permissible date and offer new prices.
What applies if the contract has a price adjustment clause?
Then the price may rise as provided for in the clause, within the limits of the Preisklauselgesetz (German Price Clause Act) and, for general terms and conditions, of § 307 BGB. Check the index, period, threshold and notice period, and whether the clause only adjusts the cost share affected.
Can I terminate without notice because of a price increase?
For contracts between businesses, the BGB does not provide a general special right of termination in the event of price increases; such a right may arise from the contract. Long-term contracts can be terminated for good cause (§ 314 BGB). Whether a price increase constitutes such a cause depends on the individual case.
How quickly should I respond?
Before the increase is due to take effect and within the period your contract provides for objections. Some clauses treat silence as consent.
Sources
- § 311 Bürgerliches Gesetzbuch (German Civil Code)
- § 315 Bürgerliches Gesetzbuch (German Civil Code)
- § 313 Bürgerliches Gesetzbuch (German Civil Code)
- § 314 Bürgerliches Gesetzbuch (German Civil Code)
- § 307 Bürgerliches Gesetzbuch (German Civil Code)
- Preisklauselgesetz (German Price Clause Act), § 1
- Fünfte Mindestlohnanpassungsverordnung (Fifth Minimum Wage Adjustment Ordinance)
- Entgelttarifvertrag Sicherheitsdienstleistungen Berlin und Brandenburg (pay agreement for security services in Berlin and Brandenburg), declared generally binding on 26 May 2026 with effect from 1 January 2026
- IG Metall: Tarifergebnis Elektrohandwerk Berlin-Brandenburg (pay settlement for the electrical trade in Berlin-Brandenburg), 25 August 2026
- IG Metall: Tarifergebnis SHK-Handwerk Nordrhein-Westfalen (pay settlement for the plumbing, heating and air conditioning trade in North Rhine-Westphalia), 13 February 2026
- IG Metall and intex: Tarifsammlung Textile Dienste 2025 bis 2027 (textile services collective agreements, 2025 to 2027), as of 1 December 2025
- IG BAU on the second pay round, 22 October 2026
- Statistisches Bundesamt (Destatis): producer prices in September 2026, press release of 20 October 2026
