German Wages Rise 41 Percent in Second Quarter

German Wages Rise 41 Percent in Second Quarter

German wages experienced sustained growth in the second quarter of 2025, according to data released Friday by the Federal Statistical Office (Destatis). Nominal wages rose by 4.1 percent year-on-year, while consumer prices increased by 2.1 percent over the same period. This resulted in a real wage increase of 1.9 percent, continuing a positive trend observed in recent quarters.

Notable above-average nominal wage gains were recorded in the financial and insurance services sector (+7.6 percent), professional, scientific and technical activities (+7.6 percent) and other business services (+5.5 percent).

Conversely, sectors including trade, maintenance and repair of motor vehicles (+2.7 percent), arts, entertainment and recreation (+2.7 percent) and transport and storage (+1.7 percent) experienced comparatively modest nominal wage increases. The energy sector saw a slight decrease in nominal wages, registering a decline of -0.2 percent.

Analyzing full-time employees by income quintile, the lowest income fifth (the first quintile) recorded the strongest nominal wage growth at 6.5 percent, continuing a pattern of stronger gains for lower earners.

Overall, earnings for all full-time employees increased by 4.3 percent. The highest income fifth of full-time employees (the fifth quintile), however, saw a nominal wage increase of +2.5 percent, falling slightly below the overall economic trend.

Apprentices experienced a disproportionately high nominal wage increase of +5.5 percent year-on-year. Marginal employment, however, saw a more limited increase of just 0.6 percent, according to the federal office.