Real wages in Germany increase for first time in two years
For the first time in two years, real wages in Germany have experienced a slight increase, the Federal Statistical Office reported on Tuesday.
In the second quarter of this year, the very strong salary increases of 6.6 percent surpassed the rise in consumer prices (6.5 percent).
This resulted in 0.1 percent real wage growth compared to the same quarter of the previous year. Prior to the past quarter, qrowth was last recorded in the second quarter of 2021 with an increase of 3.2 percent.
The nominal wage increase of 6.6 percent from April to June was the highest since the beginning of the time series in 2008, according to the authority.
Factors contributing to the rise included an increase in the minimum wage and the higher threshold for mini-jobs, set at €520, as well as inflation compensation bonuses agreed upon by many companies. These bonuses, up to a maximum of €3,000, can be provided tax-free and without deductions.
READ ALSO: The rules in Germany around 'mini' and 'midi-jobs'
Employees in marginal employment, or mini-jobs, showed the highest wage increases at 9.7 percent. Nominal wages increased significantly in sectors where substantial declines were recorded during the Covid-19 pandemic, including gastronomy (+12.6 percent), transport and warehousing (+10.0 percent), as well as the arts, entertainment, and recreation sectors (+11.9 percent).
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In the second quarter of this year, the very strong salary increases of 6.6 percent surpassed the rise in consumer prices (6.5 percent).
This resulted in 0.1 percent real wage growth compared to the same quarter of the previous year. Prior to the past quarter, qrowth was last recorded in the second quarter of 2021 with an increase of 3.2 percent.
The nominal wage increase of 6.6 percent from April to June was the highest since the beginning of the time series in 2008, according to the authority.
Factors contributing to the rise included an increase in the minimum wage and the higher threshold for mini-jobs, set at €520, as well as inflation compensation bonuses agreed upon by many companies. These bonuses, up to a maximum of €3,000, can be provided tax-free and without deductions.
READ ALSO: The rules in Germany around 'mini' and 'midi-jobs'
Employees in marginal employment, or mini-jobs, showed the highest wage increases at 9.7 percent. Nominal wages increased significantly in sectors where substantial declines were recorded during the Covid-19 pandemic, including gastronomy (+12.6 percent), transport and warehousing (+10.0 percent), as well as the arts, entertainment, and recreation sectors (+11.9 percent).
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