Real earnings data released by the Destatis office represent price-adjusted gross monthly earnings of full-time employees, and take into account inflation that gained 1.1 percent over the same period.
Nominal salaries, the figure on monthly pay checks, gained an average of 2.6 percent in 2010 on an annual basis in Germany, Europe's biggest economy.
Destatis said the trend was influenced by developments in temporary work, which declined last year after increasing at the start of the country's latest recession in 2008-2009.
Certain sectors benefitted from increases that outpaced inflation, including rises of 4.4 percent in manufacturing and 4.2 percent in finance for example.
Those who worked in education and the public sector however saw increases of just 0.7 and 0.8 percent, respectively, the data showed.
Destatis said the average annual gross German salary now stood at €42,535 ($58,700), but that bank and insurance employees earned an average of €60,963 per year.