Agency Report –
Real wages in Germany rose for the eighth consecutive time in the first quarter, though at a slower pace than recorded in recent quarters, according to figures published by the Federal Statistical Office on Thursday.
Employees were earning 1.2% more in the first quarter compared to the same period last year, the agency said in a press release.
A nominal wage increase of 3.6% was offset by a 2.3% increase in consumer prices in the first three months of 2025, according to the statisticians, amounting to the weakest increase in nominal wages since the fourth quarter of 2022.
Real wages last increased at a slower pace in the third quarter of 2023, when they rose by 0.6%.
The agency attributed the slowdown in wage growth to the inflation compensation premiums – a tax-free one-off bonus of up to €3,000 ($3,400) – paid out to workers last year to offset the burden of rising consumer prices.
According to calculations by the statistical office, wages of low earners saw the highest wage increases on average in the first quarter of 2025, rising by 7.2% compared to the same period last year.
Full-time employees received a gross increase of 3.6%.
